They’ll be in college before you know it.

2019/2020 Enrollment HighlightsMaryland Senator Edward J. Kasemeyer Prepaid College Trust Maryland Senator Edward J. Kasemeyer College Investment Plan

Starthere.

Start saving now.

Nancy K. Kopp State Treasurer, Board Chair

Robert L. Caret, Ph.D. Chancellor, University System of Maryland

Carol Coughlin

Peter Tsirigotis

Peter Franchot State Comptroller

James D. Fielder, Jr., Ph.D. Secretary of Higher Education

Keith D. Persinger

Rev. Dr. Lisa M. Weah

Carol Beatty Secretary, Maryland Department of Disabilities

Karen B. Salmon, Ph.D. State Superintendent of Schools

Joanna Pratt

Enrolling in the Maryland 529 Plans is an important decision for you and your family. The Maryland Senator Edward J. Kasemeyer Prepaid College Trust and Maryland Senator Edward J. Kasemeyer College Investment Plan Disclosure Statements provide investment objectives, risks, expenses and costs, fees, and other information you should read and consider carefully before investing. If you or your Beneficiary live outside of Maryland, you should compare Maryland 529 to any college savings program offered by your home state or your Beneficiary’s home state, which may offer state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in such state’s 529 plan. While distributions from 529 college savings plans for elementary or secondary education tuition expenses are federally tax-free, state tax treatment will vary and could include state income taxes assessed, the recapture of previously deducted amounts from state taxes, and/or state-level penalties. You should consult with a tax or legal advisor for additional information.

Dear Friends:

For our children to succeed, a college education is no longer a point of advantage; it’s almost mandatory for entry into today’s competitive marketplace. But with college costs continuing to rise, paying for college is becoming increasingly difficult. Doing so requires thoughtful planning and starting your education savings as early as possible.

It is our mission to help Maryland families give their children a college education without accumulating significant debt. That’s why we’re pleased to offer the Maryland 529 Plans, which offer tax-free earnings, a generous Maryland State income deduction, affordable payment plans, flexible Investment Options, an opportunity for a State contribution, and many other benefits. As a result of federal tax reform enacted at the end of 2017, the savings program can also be used to fund tuition at a private, public or religious elementary or secondary school.

In this booklet, you’ll find information about both options offered by the State of Maryland: the Maryland Senator Edward J. Kasemeyer Prepaid College Trust (also referred to as Maryland Prepaid College Trust or MPCT) and the Maryland Senator Edward J. Kasemeyer College Investment Plan (also referred to as Maryland College Investment Plan or MCIP). Since each is based on a different savings strategy and offers distinct Benefits, we’ve provided easy-to-read charts and tools to help you decide which is best for you. You may even choose to enroll in both of them. When you’re finished, you’ll also find everything you need to open an Account.

Sincerely,Maryland 529 Board

Read this bookletand the enclosed Disclosure Statements.

Questions? Check the FAQs or call us at 888.4MD.GRAD (463.4723).

Start saving! Open an online Account at Maryland529.com or complete the form in the Disclosure Statement.

3 easy steps.

1 32

Congratulations! You’ve taken the first step toward saving for your child’s future education. In this Enrollment Kit, you’ll find everything you need to know about Maryland’s two State-sponsored 529 Plans, both of which are designed to make saving for college easy and affordable:

THE MARYLAND PREPAID COLLEGE TRUST lets you lock in tomorrow’s Tuition at today’s prices with affordable payment options and the security of a Legislative Guarantee.

THE MARYLAND COLLEGE INVESTMENT PLAN, managed by T. Rowe Price, offers a variety of investment portfolios, flexible contribution amounts, and no loads, sales charges, commissions, enrollment Fees, or Annual Account Fees.

Both Plans Offer Big BenefitsAFFORDABILITY—Start saving with as little as $25 with the College Investment Plan, or start with a one-semester college plan in the Prepaid College Trust.

CHOICE—Your child can use both Plans toward nearly any accredited two-year or four-year college nationwide, including U.S. schools with campuses outside the country.

FLEXIBILITY—Both Plans give you options should your child receive a Scholarship or grant, delay the start of school, or choose not to use the Plans for other reasons. The Plans also offer a broad range of investment strategies and payment options to fit your family’s goals and budget.

MARYLAND TAX BENEFITS— Earnings in both Plans are tax-free when used toward eligible education expenses. Plus, the Maryland 529 Plans are the only plans to offer Maryland taxpayers an annual Maryland State income deduction on contributions of up to $2,500 per Account, or per Beneficiary, depending on the plan you choose.

The availability of tax benefits may be conditioned on meeting certain requirements such as residency, purpose for or timing of distributions, or other factors as applicable. If you receive a State contribution, you are not eligible in that year for the income deduction on your State taxes for contributions that you made to that or any other College Investment Plan Account.

Save here. Go anywhere.

Start saving! Open an online Account at Maryland529.com or complete the form in the Disclosure Statement.

Did you know?Friends and family members can make gift contributions to your Account. Those gift-givers with Maryland taxable income can also receive a State income tax deduction for their contributions.

Maryland529.com/Gift

The Power of Two — Benefits of enrolling in both Plans.With college Tuition and related expenses continuing to increase every year, the future cost of college is daunting. Enrolling in both Plans allows you to take advantage of the features of each Plan and diversify your higher education savings.

To cover $25,000 in college costs, a family could either choose to pay by saving in a 529 plan or borrowing with loans.

A family choosing to invest about $86 a month for 15 years would have made a total out-of-pocket investment of about $15,500. With potential earnings, this could amount to $25,000 to use toward college expenses. A 6% annual return is included, but is hypothetical only.

A family choosing to borrow might pay about $259 per month for 10 years, for a total out-of-pocket cost of nearly $31,100 for $25,000 in loans. This assumes a 4.53% interest rate on subsidized Federal direct undergraduate loans, which do not accrue interest during college.

Figures are for illustrative purposes only and not intended to predict or project the returns of any specific investment.

This example does not consider any investment or loan origination fees. Amounts are rounded. The loan interest rate is based on a Federal direct undergraduate loan disbursed in July 1, 2019. Other loan arrangements could have different rates or terms.

Saving can cut your out-of-pocket college costs in half.

Cost of savings

$15,500

Cost of borrowing

$31,100

T. ROWE PRICE and INVEST WITH CONFIDENCE are, collectively and apart, trademarks of T. Rowe Price Group, Inc.

With the Maryland Prepaid College Trust, you lock in future college Tuition at today’s prices. And, you get peace of mind knowing that the Prepaid College Trust is backed by a Maryland Legislative Guarantee.

How does the Trust work?The Maryland Prepaid College Trust is a pooled fund similar to a defined benefit plan. You are purchasing a contract that will pay a specific value in the future. So, you will not have a daily value on your Account like a mutual fund, but the Trust will pay Benefits in future Tuition dollars. For example, if Maryland Public College Tuition increased by 10% from the year you purchased your contract, the Maryland Prepaid College Trust would pay that higher Tuition.

By enrolling in the Maryland Prepaid College Trust, your Account will pay future Tuition Benefits for the number of semesters or years purchased. As stated in the disclo-sure statement and summarized below:

AT A MARYLAND PUBLIC COLLEGE OR COMMUNITY COLLEGEFull in-state or in-county Tuition and Mandatory Fees.

AT AN ELIGIBLE PRIVATE OR OUT-OF-STATE COLLEGE OR GRADUATE SCHOOLBenefits available to pay actual Tuition and Mandatory Fees up to a maximum amount of that year’s Weighted Average Tuition of the Maryland Public Colleges, or a Minimum Benefit, whichever is greater.

Also, if your child receives a Scholarship or grant, you can use your Account toward other eligible college expenses such as room and board, books, course-specific fees, etc.

For more detailed information, please refer to the Disclosure Statement, visit https://maryland529.com/FAQs/Prepaid-College-Trust.

The information above is only a summary. Please carefully read the Disclosure Statement that outlines the complete details of the Plan.

Maryland Prepaid College TrustTomorrow’s Tuition at today’s prices.

In the event that the Trust ever experiences a financial shortfall, Maryland law requires the

Governor to include Funds in the State budget to allow the Trust to pay your full Benefits.

As with the entire State budget, the Maryland General Assembly has final approval.

GU

ARANTEE

LEG

ISLA

TIVE

Tuition PlansThe Maryland Prepaid College Trust offers you a variety of Tuition plans, which include payment of Tuition and Mandatory Fees.

UNIVERSITY PLAN: Purchase one semester or one, two, three, or four years at a four-year college or university.

COMMUNITY COLLEGE PLAN: Our most affordable plan. Purchase one or two years at a community college. However, this plan does not require your child to attend a community college. If he or she attends a four-year college, in or out of Maryland, this plan will pay up to that year’s Weighted Average Tuition of Maryland’s community colleges toward the Tuition and Mandatory Fees at the selected college.

TWO-PLUS-TWO PLAN: Purchase two years at a community college and two years at a four-year college.

Payment OptionsThe Maryland Prepaid College Trust also offers several payment options to help you find one to fit your budget.

LUMP SUM: A one-time payment.

ANNUAL: Equal yearly payments.

FIVE-YEAR MONTHLY: 60 equal monthly payments.

EXTENDED MONTHLY: Equal monthly payments for a specified number of months that generally continue through December 1st of the year prior to the projected year of the child’s college enrollment (or initial year of eligible use for current 10th –12th graders).

DOWN PAYMENTS: 25%, 40%, or 55% of the lump sum, with the remaining amount paid by either monthly or annual payments, as described above.

Flexible Tuition plans and payment options.

Please see the Disclosure Statement for details.

“The Maryland Prepaid College Trust is a

resource that enabled us to send our daughter

(and son soon to follow) to a 4-year University.

One of the best financial decisions ever

was to pre-pay the Tuition as it makes the

remaining college expenses somewhat

tolerable. We are quite sure our children

would not have the opportunity to attend

a 4-year University without this program.”

Paul Becker — Maryland Prepaid College Trust Account Holder (not pictured)

The Maryland College Investment Plan offers a broad range of Investment Options managed by T. Rowe Price, a leading investment firm since 1937. You can choose from two different approaches or use a combination of both to save for your child’s future.

Enrollment Based Portfolios— Change automatically based on time horizon These portfolios start out more aggressive—when the target year is farther off—and invest in stock mutual Funds with a focus on growth. Over time, the assets shift to an emphasis on bond Funds as the Beneficiary approaches enrollment.

Fixed Portfolios— Investment mixes that remain the same You can choose one or more from nine portfolios that invest in a mix of stocks, bonds, or money market mutual Funds. Portfolios with greater allocations to stock Funds are generally expected to carry higher risk and the opportunity for higher returns, while portfolios with more bond and money market Funds are generally expected to offer less risk and lower returns.

Maryland College Investment PlanProfessionally managed by T. Rowe Price.

We help make saving for college affordable.Every little bit helps! You can start saving with as little as $25 with the Maryland College Investment Plan. Use the College Cost Calculator at Maryland529.com to understand the future cost of college and to estimate how much you will need to save to reach your college investment goal.

0%

20%

40%

60%

80%

100%

21 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0

Portfolio 2033

Portfolio 2027

Portfolio 2021

Portfolio for Education Today*

Stocks Bonds and Money Markets

Years in schoolYears until enrollment

Neutral Allocations as of 10/1/19.

Portfolio 2036

Portfolio 2030

Portfolio 2024

Portfolio 2039

*Effective November 15, 2019, Portfolio for College was renamed to Portfolio for Education Today.

Neutral Allocations as of 10/1/19.

Stocks Bonds Money Market

Global EquityMarket Index

Portfolio

100%

Balanced Portfolio

60% 40%

Bondand Income

Portfolio

100%

U.S. BondEnhanced Index

Portfolio

100%

U.S. Treasury Money Market

Portfolio

100%

Neutral Allocations as of 10/1/18.

100%

Extended Equity Market Index

Portfolio

100%

Inflation FocusedBond Portfolio

EquityPortfolio

100% 100%

EquityIndex 500Portfolio

®

T. ROWE PRICE and INVEST WITH CONFIDENCE are, collectively and apart, trademarks of T. Rowe Price Group, Inc.

The advantage of starting early. The chart below shows the difference that starting early and saving monthly can make over time. Investing $200 per month when your child is born could add up to $77,858 in total savings at the start of college. However, waiting just five years means that you could need to save an extra $130 per month ($330 per month total) to potentially reach that same goal. Or consider it this way: if you start saving $200 monthly at your child’s birth, you could have over $30,000 more than you would by waiting five years to start saving the same amount. Any Earnings in a 529 plan are not taxed while invested in the Plan, so all of the money you make in the Plan stays in the Plan, helping your savings grow even more.

Saving now can make a big difference later.

$47,325

$32,940

$14,024

COLLEGEAT AGE 18

MONTHLY SAVINGS

TO

TA

L SA

VIN

GS

$200

$330$200

$200

$470

$200

$1,100

FROM BIRTH

FROM AGE 8

FROM AGE 13

FROM AGE 5

$77,858

Chart assumes a hypothetical 6% rate of return compounded monthly. This chart is for illustrative purposes and does not predict or project the return of any specific Investment Option. Investment returns in a college savings plan will vary and may be higher or lower than this example. Making Automatic Monthly Contributions does not assure a profit or protect against loss during varying market conditions. This illustration does not include Fees and any Fees assessed by the investment offering could have an impact on returns. The dollar amounts in blue illustrate how much more you may need to save per month to reach your college savings goal.

®

Saving for college is a challenge for many families. That’s why the State of Maryland and Maryland 529 want to help Maryland families through the Save4College State Contribution Program.

The Save4College State Contribution Program is designed to help low- to middle-income families in Maryland save money for higher education. Open an MCIP Account and you may be eligible to receive a $250 or $500 contribution by the State.

How Does It Work?To be eligible, an applicant must meet the following requirements:

• The application period opens January 1. All applicants must submit their application for the Save4College State Contribution Program by 11:59pm on May 31.

• The Beneficiary must be a Maryland resident and the Account Holder’s Maryland taxable income cannot exceed the maximum household income range ($112,500 as an individual or $175,000 for married couples filing jointly based on the previous taxable year).

• Current Maryland College Investment Plan (MCIP) Account Holders are eligible to apply for the State contribution if they opened the MCIP Account after December 31, 2016, or you can open a new Maryland College Investment Plan*.

For more information, visit Maryland529.com/Save4College

The Maryland General Assembly may make changes to the State Contribution Program

in the future that impact the contribution amounts, minimum requirements, or other

eligibility requirements. State contributions are not guaranteed. The State funding for

contributions is limited to $6,300,000 in fiscal year 2020, and each fiscal year thereafter.

As with the entire State budget, the Maryland General Assembly has final approval. If

resources are insufficient to fully fund all eligible Accounts, Maryland 529 shall provide

contributions in the order in which applications are received in good order and give priority

to applications of Account Holders who did not receive a State contribution in any prior

year. If you receive a State contribution for any Account in a given year, you are not eligible

in that year for the income deduction on your State taxes for contributions that you made

to that or any other College Investment Plan Account. You should check with your tax

advisor regarding your specific situation.

Maryland Taxable Income

Individual Married Filing Jointly * Minimum State Contribution Contribution

$49,999 or less $74,999 or less $25 $500

$50,000 – $87,499 $75,000 – $124,999 $100 $500

$87,500 – $112,500 $125,000 – $175,000 $250 $250

*To be eligible to receive the State contribution, however, you must make the minimum

contribution based on your household income, by November 1.

“As a single mother, I

want my teenage son to

be successful and go

to college. When I learned

about the Maryland 529

Plans, I immediately enrolled

because college costs are so

expensive. Since I have been

saving little by little, he will

have no excuse not to go!”

Nancy Fuller(not pictured)

Save4CollegeState Contribution Program

COMPARE BOTH OPTIONS WITH MARYLAND 529.

MARYLAND PREPAID COLLEGE TRUST

MARYLAND COLLEGE INVESTMENT PLAN

How can I use the Plans?

Use it to pay the full in-state or in-county Tuition and Mandatory Fees at any Maryland Public College or up to the Weighted Average Tuition toward nearly any private or out-of-state college.

Use it at nearly any public, private, or technical college nationwide for any eligible expenses such as Tuition, fees, room and board, books, course- specific fees or supplies. Distributions can also be used to cover tuition at an elementary or secondary public, private or religious school. Visit Maryland529.com/K-12 to learn more.*

What’s unique about each Plan?

It lets you lock in tomorrow’s Tuition at today’s prices, and it is backed by a Maryland Legislative Guarantee.

You can choose from a variety of Investment Options ranging from more aggressive to more conservative investment strategies. Your investment return and principal value will vary, depending on the Investment Option you choose.

What are theMaryland tax benefits?

Any Earnings are Maryland tax-free when used toward Qualified Higher Education Expenses. Each Account Holder or individual who contributes to the Beneficiary’s Account can also deduct up to $2,500 of payments each year from Maryland income per Account—$5,000 for two, $7,500 for three, etc. Payments in excess of $2,500 per Account can be deducted in future years until the full amount of pay-ments has been deducted.

Any Earnings are Maryland tax-free when used toward Qualified Education Expenses. Each Account Holder or individual who contributes to the Beneficiary’s Account can also deduct up to $2,500 of contributions each year from Maryland income per Beneficiary—$5,000 for two, $7,500 for three, etc. Contributions in excess of $2,500 can be deducted for up to the next 10 years. Account Holders who receive the $250 or $500 State contribu-tion are not eligible for the subtraction modification for any taxable year in which they receive the State contribution.

Are there federal tax benefits?

Yes. Any Earnings are federally tax-free when used toward Qualified Higher Education Expenses.

Yes. Any Earnings are federally tax-free when used toward Qualified Education Expenses.

What are the age requirements?

Enrollment is open to children from newborn through 12th grade, although Accounts must be open for at least three years before Tuition Benefits can be paid.

Enrollment is open to children or adults of any age.

Do I have to live in Maryland?

Either the Account Holder or child must be a Resident of Maryland or Washington, D.C. when the account is opened.

No. There are no State residency requirements; however, if you are applying for the Save4College State Contribution Program, the Beneficiary must be a Maryland resident.

When can I enroll?

December 1, 2019 through May 31, 2020—year-round for newborns.

Any time. If you are applying for the Save4College State Contribution Program, see page 8 for enrollment dates.

What are my Plan options?

There are a variety of Tuition plans. Select from one semester or one to four years at a four-year college, one or two years at a community college, or a com-bination. You may change your Tuition plan at nearly any time.

Contributions can be made by check, Automatic Monthly Contributions from your bank account or payroll deduction from a participating employer. Friends and family can also choose to make a gift contribution. Other ways to fund an Account are described under “How To Contribute To Your Account” in the College Investment Plan Disclosure Statement.

What are my payment options?

There are many different payment options. You can select the one that’s right for your family budget. The cost is fixed by the number of semesters or years pur-chased, age of child, and payment plan selected. You may change your payment options at any time.

Contributions can be made by check, Automatic Monthly Contributions from your bank account or payroll deduction from a participating employer. Friends and family can also choose to make a gift contribution. Other ways to fund an Account are described under “How To Contribute To Your Account” in the College Investment Plan Disclosure Statement.

How much can I contribute?

See What are my payment options? Your minimum investment is $25 per portfolio. You can invest up to a maximum Account balance of $500,000 per Beneficiary. See page 8 for minimum contribution totals for the Save4College State Contribution Program.

What are the Fees and expenses?

The Prices and Fees section of the Prepaid College Trust Disclosure Statement contains information on all applicable Fees and expenses.

There are no enrollment, maintenance, or annual Fees associated with the College Investment Plan. The Fees and Expenses section of the College Investment Plan Disclosure Statement contains additional information on all applicable Fees and expenses.

*While distributions from 529 college savings plans for elementary or secondary education tuition expenses are federally tax-free, state tax treatment will vary and could include state income taxes assessed, the recapture of previously deducted amounts from state taxes, and/or state-level penalties. You should consult with a tax or legal advisor for additional information.

Does my child have to attend a Maryland Public College? NO. Depending on the Plan, you can use your Accounts toward the costs of nearly any public or private, two-year or four-year college nationwide, as long as the Student is enrolled in a U.S.-accredited college, university, or technical school that is eligible to participate in U.S. Department of Education student financial aid programs. To find out if a particular school is an Eligible Institution, search for a school code at fafsa.ed.gov. The Maryland 529 Plans can also be used for nearly any graduate school, medical school, or law school, among others, nationwide.

Can I open more than one Account per Beneficiary? YES. You can open multiple Accounts per Beneficiary. In the Prepaid College Trust you can purchase contracts for up to seven years of college per Beneficiary with no more than four years in a single Account. In the College Investment Plan, you can invest in one or more of the different Investment Options offered. In both Plans, you cannot have multiple Beneficiaries, however, on the same Account.

What tax benefits are offered? Maryland 529 offers Maryland State and federal tax benefits, starting with tax-deferred savings and a Maryland State income deduction for Maryland taxpayers. Any Earnings are Maryland and federally tax-free when used toward eligible college expenses.

If we enroll in the Maryland 529 Plans, can we still apply for financial aid?YES. Participation in the Maryland 529 Plans does not limit your ability to apply for financial aid or a Student’s receipt of merit-based financial aid, including academic or athletic Scholarships. Like most investments, however, it may affect your ability to receive need-based financial aid, although the federal financial aid formula currently counts—at most—only 5.6% of your non-retirement assets to be used for college expenses each year. This means that if you have saved $5,000 for college, the aid amount you may be eligible for would be reduced by only $280. Since the majority of federal financial aid is offered in the form of loans, any college savings can help to reduce reliance on student loans.

What happens if my child receives a Scholarship or grant? There are several options you can choose from:

• Use your Account to pay any Tuition and fees not covered by the Scholarship or grant;

• Apply your Account toward other Qualified Higher Education Expenses such as room and board, books, or course-specific fees (Prepaid College Trust Accounts are first used to pay remaining Tuition and Mandatory Fees);

• Transfer your Account to another member of the Student’s family;

• Keep any unused Funds or Benefits in your Account to pay for future college expenses, including graduate school; or

• Withdraw any unused Funds or Benefits up to the amount of the Scholarship or grant without penalty, although income taxes on Earnings may apply.

Can I change the child that is listed on the Account?YES. You can transfer your Account without any taxes or penalties to any member of the Beneficiary’s (child’s) family as defined by the Internal Revenue Service. This definition includes the Beneficiary’s spouse and other relatives of the Beneficiary.

Prepaid College Trust Accounts must have at least one semester of remaining Benefits in order to change the Beneficiary.

What if my child does not go to college immediately after high school? Maryland 529 does not require the child to attend college immediately after graduating high school. The Prepaid College Trust allows up to a 10-year delay (plus time served in active U.S. military service) before you have to start using your Benefits. With the College Investment Plan, there are no restrictions on when the Account can be used to pay for Qualified Higher Education Expenses. But with both Plans, you also have the following options:

• Transfer your Account to another member of the Beneficiary’s family; or

• Take a distribution or reduced refund from your Account. (Plan penalties, federal tax penalties, and/or income taxes on Earnings may apply. See the Disclosure Statements for additional details.)

What if the Beneficiary or I move out of Maryland after I open an Account? You can continue your Account, and your Beneficiary can still use the Account to attend any eligible college or graduate school in the country. However, if you move out-of-state and no longer pay Maryland income tax, you will no longer receive the Maryland State tax benefits. With the Prepaid College Trust, if the child is no longer a Maryland Resident but decides to attend a Maryland Public College, we will still pay the full in-state or in-county Tuition and Mandatory Fees. You or the child would be responsible for any out-of-state Tuition charges. If you also have a College Investment Plan Account, you could apply it toward any other eligible expenses.

Frequently Asked Questionsabout Maryland 529.

What if I experience a financial hardship and need to withdraw the Funds for a purpose other than college expenses? You may request a distribution or refund at any time. If the Funds are not used for eligible college expenses, Maryland State and federal taxes, plus a 10% federal penalty, will apply to any Earnings portion of your distribution or refund. For details about specific tax and other penalties for each Plan, please read the Key Federal Tax Issues and Key State Tax Issues sections in each of the enclosed Disclosure Statements.

What if I already have a 529 plan? Can I transfer my Account to Maryland 529? YES. We will accept a rollover of your Account with another 529 plan into the Maryland 529 Plans. To complete a rollover, simply submit an Enrollment Form for your desired Plan, along with a Rollover Form. Both forms are available on our website or you may call us for assistance. You may also need to contact the sponsor of your current 529 plan for additional details on rolling over your Account.

When can I enroll a newborn? A newborn infant can be enrolled in either Plan from the date of his/her birth. An infant under the age of one year can be enrolled in the Prepaid College Trust any time during the year until his/her first birthday at prices that are in effect when the enrollment is completed. You may also enroll in the College Investment Plan and name yourself as the Beneficiary in anticipation of the birth or adoption of a child or grandchild.

Are there unique gift-related tax benefits for contributing to the Maryland 529 plans? YES. The Internal Revenue Code provides that payments to an Account in the Maryland 529 Plans are a completed gift for federal gift tax purposes; however, like all completed gifts, gift tax exclusions may apply. Additionally, under certain conditions, you may contribute to a 529 plan above the annual gift tax exclusion limit and then average your total gift over five years without gift taxes applying. This benefit is unique to 529 plans and is not available in other account types. Please consult your tax advisor for more information.

What are the risks involved? As with any investment, there are risks involved in investing in the Maryland 529 Plans. To learn about the risks, please read and carefully consider the Risk Factors section in the Prepaid College Trust Disclosure Statement and the General Risks and Investment Risks sections of the College Investment Plan Disclosure Statement.

For the Maryland Prepaid College Trust:• Choose a Tuition plan for your desired number

of semesters or years of college.

• Choose the payment plan that best fits your family’s budget.

Complete an enrollment form for each child you want to enroll by the end of the enrollment period either online or postmarked by May 31, 2020.

For the Maryland College Investment Plan:• Choose one or more Investment Options.

• Choose how much and how often you wish to contribute.

• Complete an enrollment form for each Student you wish to enroll.

You’ll find all the information you need in the Disclosure Statements included with this booklet. Please read them carefully.

Enrollment Methods: Enroll online at Maryland529.com or by using the forms we’ve included. You may also copy these forms for multiple enrollments. Enrolling online may require use of a credit card to pay the enrollment fee(s) for the Prepaid College Trust. This is the only time Maryland 529 will accept a credit card.

Payment/Contribution Methods:Among other options, you can pay or contribute by automatic contributions from your bank account, payroll deduction from a participating employer, or by check.

To take advantage of the Maryland income deduction for the 2019 tax year, your enrollment form and contribution must be either completed online and processed by your bank or postmarked by December 31, 2019.

Enroll now. It’s easy.

Administrator 217 East Redwood Street, Suite 1350 | Baltimore, MD 21202 Monday through Friday – 8:00 a.m. - 4:30 p.m.Maryland529.com | 888.4MD.GRAD (463.4723)

MAILING ADDRESS

217 East Redwood Street, Suite 1350 Baltimore, MD 21202

Fax: 410.333.2295 Monday through Friday – 8:00 a.m. to 4:30 p.m.

For General Inquiries: MPCT@Maryland529.org

For Existing Account Holders: Accounts@Maryland529.org

MAILING ADDRESS

P.O. Box 17479 Baltimore, MD 21297-1479

Fax: 410.581.5174 info@marylandcollegeinvestmentplan.org

T. Rowe Price Associates, Inc., Program Manager and Investment Adviser

T. Rowe Price Investment Services, Inc., Distributor/Underwriter

This Highlights Booklet is part of the Maryland 529 Enrollment Kit. The Enrollment Kit consists of this Highlights Booklet and Disclosure Statements for the Maryland Prepaid College Trust and the Maryland College Investment Plan, with accompanying Enrollment Forms. The Enrollment Kit has been identified by Maryland 529 as the Offering Materials intended to provide substantive disclosure of the terms and conditions of an investment in the Maryland 529 Plans. The Enrollment Kit is designed to comply with the Disclosure Principles Statement No. 6, adopted by t he College Savings Plans Network on July 1, 2017.

Copyright 2019 Maryland 529 and T. Rowe Price Associates, Inc.201910- 929377

Maryland Prepaid College Trust

Maryland College Investment Plan

WHERE TO FIND MORE INFORMATION

For specific information on the Maryland Senator Edward J. Kasemeyer Prepaid College Trust and the Maryland Senator Edward J. Kasemeyer College Investment Plan, please read the Prepaid College Trust Disclosure Statement and the College Investment Plan Disclosure Statement in their entirety.

If you have read the Disclosure Statements and would like additional information, please refer to the Frequently Asked Questions section on our website at Maryland529.com/FAQs.

APRIL 2020

IMPORTANT UPDATE TO THE MARYLAND SENATOR EDWARD J. KASEMEYER PREPAID COLLEGE TRUST DISCLOSURE STATEMENT

This supplement amends the Maryland Senator Edward J. Kasemeyer Prepaid College Trust

Disclosure Statement, dated December 2019. You should review this information carefully and keep

it with your current copy of the Prepaid Trust Disclosure Statement.

Article II - Definitions

The following sentence is removed from end of the definition of “Qualified Education Expenses” within the Glossary:

Note: Student loan expenses are not considered by the IRS to be Qualified Higher Education Expenses.

K117-044

2019/2020 Maryland Senator Edward J. Kasemeyer Prepaid College TrustDisclosure Statement & Enrollment FormEnrollment Period: December 1, 2019 – May 31, 2020

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Maryland does not guarantee investment returns. Investments in the Maryland Senator Edward J. Kasemeyer Prepaid College Trust are backed by a Maryland Legislative Guarantee. In the event that the Trust ever experiences a financial shortfall, Maryland law requires the Governor to include funds in the State budget to allow the Trust to pay your full Benefits. As with the entire State budget, the Maryland General Assembly has final approval.

Section 529 Plans offered by other states may offer tax or other benefits to taxpayers or residents of those states that are not available in Maryland, and taxpayers or residents of those states should consider such state tax treatment and other benefits, if any, before making an investment decision.

Section 529 Plans are intended to be used only to save for Qualified Higher Education Expenses. These Plans are not intended to be used, nor should they be used, by any taxpayer for the purpose of evading federal or state taxes or tax penalties. Taxpayers may wish to seek tax advice from an independent tax advisor based on their own particular circumstances.

Account Holders should periodically assess, and if appropriate, adjust their investment choices with their time horizon, risk tolerance and investment objectives in mind.

Investing is an important decision. Please read all Offering Materials in their entirety before making an investment decision.

Table of ContentsContract — 2019–2020 ............................................................................................................................................................................................... 3

Article I — Introduction

Article II — Definitions, Qualified Higher Education Expenses, Weighted Average Tuition

Article III — Enrollment Overview, Tuition Plans, Ownership, Multiple Accounts

Article IV — Contract Payments, Fees, Rollovers

Article V — Benefits, Multiple Institution Enrollment, Contract Conversion

Article VI — Termination, Transfer, Refunds

Article VII — Change in Beneficiary, Removing/Changing Custodian

Article VIII — Payments to You, Contract Changes, Legislative Guarantee

Operations and Additional Information ............................................................................................................................................................. 13

Risk Factors .................................................................................................................................................................................................................... 13

Prepaid College Trust Operations ......................................................................................................................................................................... 15

Plan Governance and Administration ................................................................................................................................................................. 15

Comprehensive Investment Plan .......................................................................................................................................................................... 16

Performance Information ......................................................................................................................................................................................... 18

Contract Pricing ........................................................................................................................................................................................................... 18

Key Federal Tax Issues ............................................................................................................................................................................................... 18

Key State Tax Issues ................................................................................................................................................................................................... 20

Privacy Policy ................................................................................................................................................................................................................ 20

Creditor Protections ................................................................................................................................................................................................... 21

Prices and Fees ............................................................................................................................................................................................................. 21

Enrollment Form ........................................................................................................................................................................... Center of Booklet

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Maryland Senator Edward J. Kasemeyer Prepaid College Trust 2019–2020 | Disclosure StatementFor specific information on the Maryland Senator Edward J. Kasemeyer Prepaid College Trust (Maryland Prepaid College Trust, Prepaid College Trust or Trust) please read this document in its entirety. This Disclosure Statement contains important information you should review before opening an Account in the Maryland Prepaid College Trust, including information about the benefits and risks of investing. We believe that this information is accurate as of the date of this Disclosure Statement, but it is subject to change without notice. No one is authorized to provide information that is different from the information in the most current form of this Disclosure Statement. Please read it carefully and save it for future reference. Certain capitalized terms used in this Disclosure Statement are defined in the Contract, which can be found below.

If you have read the Disclosure Statement and would like to learn more about the features and benefits of the Maryland 529 Plans, please refer to the Frequently Asked Questions section on our website at Maryland529.com/faqs or register for our interactive webinar at Maryland529.com/webinars

Contract —2019–2020Article I — IntroductionThis agreement describes the basic terms and conditions of the Maryland Prepaid College Trust (Prepaid College Trust) as authorized by Education Article Title 18, Subtitle 19 of the Annotated Code of Maryland (Enabling Legislation). Once you complete and submit an Enrollment Form to open an Account and it is accepted by the Maryland 529 Board (Board, we, our, or us), a certificate outlining the information from the Enrollment Form and detailing your contract price (Certificate of Tuition Benefits) will be issued to you. The Maryland Prepaid College Trust does not cover tuition or other educational expenses in connection with enrollment or attendance at an elementary or secondary public, private, or religious school.

The completed 2019–2020 Enrollment Form includes an acknowledgment that you agree to be bound by the terms and conditions of this document. The completed Enrollment Form, Schedule of Prices and Fees, Certificate of Tuition Benefits, the Highlights Booklet, and the Prepaid College Trust Disclosure Statement are considered a part of this document. All of these documents constitute the entire agreement between you and the Board and are called the “Contract.” You should retain a copy of the Contract, any updates to the Contract and your Account Statements for your records.

The Enabling Legislation, regulations, and any guidelines we adopt will be available for inspection at the offices of Maryland 529. You or any other interested party may receive a copy of the Enabling Legislation and the Contract by contacting Maryland 529.

This Contract is not a promise or a guarantee that:

(1) the Beneficiary will be admitted to any Eligible Institution; (2) the Beneficiary will be allowed to continue enrollment at any Eligible Institution after admission; (3) the Beneficiary will be graduated from any Eligible Institution; (4) the Beneficiary will be classified as an in-state or in-county student by any Maryland Public College; (5) the Beneficiary will receive any particular treatment under any applicable state or federal financial aid programs; and/or (6) the Beneficiary’s Tuition at any Eligible Institution will be covered in full for the number of years purchased under this Contract unless the Beneficiary attends

a Maryland Public College that determines the Beneficiary to be a Maryland or County resident, as applicable, and all of the terms and conditions of this Contract are satisfied.

Article II — Definitions The definitions of terms included in the Enabling Legislation apply to this Contract and are incorporated by reference. In addition, the following definitions apply to Contracts:

1. Academic Year means a school year consisting of two semesters, three trimesters, or four quarters that will lead to an associate’s degree, a bachelor’s degree, or a graduate degree, depending on the type of institution in which the Beneficiary is enrolled. One full Academic Year is defined as the amount of full-time, undergraduate Tuition required to cover two academic semesters at no more than 15 credit-hours per semester or the financial equivalent.

2. Account means the record that contains the details of payments, fees charged and/or paid, Benefits purchased, Benefits used, remaining Benefits, and refunds and reduced refunds in connection with a particular Beneficiary under this Contract.

3. Account Holder or you means the person who signs this Contract, controls the Account, and acquires Benefits for a Beneficiary under its terms and conditions. The Account Holder may also be any legally recognizable fiduciary such as a trust, guardianship, or estate. (Appropriate documentation may be required.) If the Account Holder is a minor, a Custodian must be named. In certain cases, the Account Holder and the Beneficiary may be the same person.

4. Account Holder’s Successor means the person named in this Contract (or in similar documents later filed with us) by the Account Holder, who may exercise the rights of the Account Holder under this Contract if the Account Holder dies or is declared legally incompetent (unless, in the latter case, a power of attorney, guardian, conservator, or similar individual is in place and is recognized by the Prepaid Trust to act on behalf of the legally incompetent Account Holder).

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5. Beneficiary or Student means a person who is entitled to receive Benefits under a Contract and who meets eligibility criteria at the time the Account Holder submits an Enrollment Form. Under certain circumstances, the Beneficiary and the Account Holder may be the same.

6. Benefits means the payments by the Trust provided under this Contract that are described in Articles V and VI of this Contract.

7. Code means the Internal Revenue Code of 1986, as amended. There are references to various sections of the Code throughout this Disclosure Statement, including Section 529 as it currently exists and as it may subsequently be amended, and any regulations adopted thereunder.

8. Custodian means the individual who executed an Enrollment Form on behalf of an Account Holder who is a minor. Generally, the Custodian will be required to perform all duties of the Account Holder with regard to the Account until the Account Holder attains the age of majority, is otherwise emancipated, or the Custodian is changed, removed, or released. The Custodian of an Account funded from an UGMA/UTMA account may not change the Account Holder or Beneficiary.

9. Declaration means the Declaration of Trust of the Maryland Prepaid College Trust.

10. Disabled or Disability means the condition of a Beneficiary who is unable to do any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or to be of long- continued and indefinite duration. An individual shall not be considered to be disabled unless proof of the existence thereof in such form and manner as may be required by applicable regulations is furnished.

11. Eligible Institution shall have the meaning ascribed to an “eligible educational institution” in Section 529(e) of the Code except that for purposes of the Prepaid Trust, the definition is limited to any institution of higher education that offers an associate, bachelor, or graduate degree program and is eligible to participate in federal financial aid programs.

12. Earnings means the amount reported to the IRS on Form 1099-Q (or other applicable form) for the same tax year as the distribution. For distributions under this Contract, the Earnings are calculated as follows: (i) if a Benefit is paid, the difference between the Benefit paid to an Eligible Institution and your payments, or (ii) if you take a refund or reduced refund, the difference between your payments and the amount of your refund.

13. FDIC means the Federal Deposit Insurance Corporation.

14. Initial Benefit Eligibility means the year in which a Beneficiary may begin to use Benefits due to the three- year minimum maturity period.

15. IRS means the Internal Revenue Service.

16. Mandatory Fees means fees assessed to all students by an Eligible Institution as a condition of enrollment at the Eligible Institution. Mandatory Fees do not include any fee that is assessed by the Eligible Institution for a particular course taken, year of enrollment, academic status, course of study, residency

status, or any other distinguishing factor used by the Eligible Institution to determine a specific fee.

17. Maryland Public College means any public Eligible Institution in the State of Maryland. You may find a list of Eligible Institutions at Maryland529.com/faqs.

18. Medallion Signature Guarantee means a type of legally binding endorsement that ensures that your signature is genuine, and that the financial company issuing the guarantee accepts liability for any forgery. You can obtain a Medallion Signature Guarantee from some banks, savings institutions, and broker-dealers.

19. Member of the Family means an individual as defined in Section 529(e)(2) of the Code. Generally, this definition includes a Beneficiary’s spouse and the following other relatives of the Beneficiary:

• Son, daughter, stepchild, foster child, adopted child, or a descendant of any of them;

• Brother or sister (including half-brothers or half-sisters), stepbrother, or stepsister;

• Father or mother, or ancestor of either;

• Stepfather or stepmother;

• Son or daughter of a brother or sister;

• Son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law;

• The spouse of any individual listed above;

• First cousin.

20. Non-Qualified Distributions means all distributions that are not used to pay Qualified Higher Education Expenses as defined in Section 529 of the Code.

21. Qualified Distribution means a distribution that is:

• Used to pay Qualified Higher Education Expenses (including distributions used to pay Qualified Higher Education Expenses that were refunded by the Eligible Institution and re-contributed to a Qualified Tuition Program for the same Beneficiary within 60 days of the refund);

• Payable upon the Beneficiary’s death or Disability;

• Made because the Beneficiary received a Scholarship, grant, and/or tuition remission provided that the total amount is greater than or equal to the amount distributed; or

• A Rollover Distribution.

22. Qualified Higher Education Expenses means Qualified Higher Education Expenses as defined in Section 529(e)(3) of the Code, except that for purposes of the Prepaid Trust, the definition does not include any amount of tuition in connection with enrollment or attendance at an elementary or secondary public, private or religious school. Generally, these include the following:

• Tuition, fees, and costs of textbooks, supplies, and equipment required for the enrollment or attendance of a student at an Eligible Institution;

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• Certain costs of room and board of a Beneficiary during any academic period during which the Beneficiary is enrolled at least half time at an Eligible Institution;

• Expenses for special needs services in the case of a special needs Beneficiary, which are incurred in connection with such enrollment or attendance at an Eligible Institution. (As of the date of this Disclosure Statement, “special needs” Beneficiary has not been defined by the IRS); and

• Expenses for the purchase of computers and peripheral equipment (e.g., printers), computer software, and Internet access and related services, to the extent that such items or services are used primarily by the Beneficiary during any of the years the Beneficiary is enrolled at an Eligible Institution.

Note: Student loan expenses are not considered by the IRS to be Qualified Higher Education Expenses. Qualified Tuition Program or 529 plan means programs satisfying the requirements of Section 529 of the Code.

23. Recontribution means a refund of any Qualified Higher Education Expenses from an Eligible Institution which is recontributed to the Prepaid College Trust for the benefit of the same beneficiary, but only to the extent such recontribution is made not later than 60 days after the date of such refund and does not exceed the lesser of the refunded amount, or the amount distributed from the Prepaid Trust.

24. Resident means a person who is a resident of the State of Maryland or the District of Columbia at the time an Enrollment Form is submitted. For Maryland, this is defined as someone who is required to file a Maryland tax return if he or she otherwise has sufficient income to file a return. For the District of Columbia, Resident means a legal resident of the District of Columbia.

25. Rollover Distribution means a transfer of assets:

i) between Qualified Tuition Programs for the same Beneficiary, provided another rollover or transfer for the same Beneficiary has not occurred in the previous 12 months, or

ii) to an account for a different Beneficiary, provided that the receiving Beneficiary is a Member of the Family of the original Beneficiary, or

iii) from a Qualified Tuition Program to an Achieving a Better Life Experience (ABLE) account for the same Beneficiary or for a different beneficiary, provided that the receiving beneficiary is a Member of the Family of the original Beneficiary. Please consult with the receiving ABLE plan to confirm any additional restrictions or requirements imposed by the ABLE plan. Federal law requires rollovers to an ABLE account to take place by December 31, 2025.

26. Scholarship means a scholarship, allowance, or payment as described in §530(d)(4)(B)(iii) and (iv) of the Code, including payments made on account of attendance at a U.S. military academy.

27. Trust Returns means the since inception rate of return for the Prepaid College Trust. The date of inception is December 31, 1998 and the since inception rate of return is updated quarterly by the Prepaid College Trust’s

investment advisor. Trust Returns are used to calculate Rollover Distributions and refunds as described in Article VI of this Disclosure Statement.

28. Tuition, as defined by § 18-1901 of the Education Article of the Maryland Code, means the actual Tuition and Mandatory Fees assessed to all students by an Eligible Institution as a condition of enrollment at the institution.Tuition does not include any fee that is assessed by the Eligible Institution for a particular course taken, year of enrollment, academic status, course of study, residency status, or any other distinguishing factor used by the Eligible Institution to determine a specific fee.

29. UGMA/UTMA means the Uniform Gifts to Minors Act/Uniform Transfers to Minors Act.

30. Weighted Average Tuition is calculated as follows: for 4-year Eligible Institutions — dividing (A) the in-state Tuition at each 4-year Maryland Public College multiplied by the number of full-time equivalent in-state students enrolled at such 4-year Maryland Public College, added together by (B) the total number of full-time equivalent in-state students enrolled at all 4-year Maryland Public Colleges.

The Weighted Average Tuition applicable to community colleges is calculated by a similar method using in-county Tuition and enrollment.

The Weighted Average Tuition is for the entire Academic Year and is calculated annually, typically in the early summer for the following Academic Year, and remains in effect for the entire Academic Year regardless of whether any Maryland four-year public college or community college, as applicable, adjusts Tuition for that same year. Please refer to Maryland529.com/faqs for the current academic year’s Weighted Average Tuition.

Article III — Participation in the Prepaid College Trust Enrolling. To participate in the Prepaid College Trust, you must complete an Enrollment Form. You and your Beneficiary must each be a U.S. citizen (or a resident alien) and have a valid U.S. Address as well as a Social Security number (if the Account Holder is a trust, a federal tax identification number is accepted). Either the Beneficiary or the Account Holder must be a Resident at the time the Enrollment Form is submitted to the Prepaid College Trust.

We have the sole discretion to determine whether an Enrollment Form is complete and accepted.

In order for your 2019–2020 enrollment to be accepted and for you to receive the Contract prices applicable to 2019–2020

Contracts, you must complete the 2019–2020 Enrollment Form and submit all of the required documentation, and any required fee or payment, to us in good order prior to the end of the 2019–2020 Enrollment Period on May 31, 2020. The following are

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exceptions in which we will accept enrollments (by mail only) after the end of the enrollment period, prior to the first day of the 2020-2021 Enrollment Period.

i) enrollment of a newborn under the age of one;

ii) enrollment by an Account Holder who has the same beneficiary enrolled in the Maryland College Investment Plan; or

iii) current Account Holders purchasing additional semesters/years for the same Beneficiary in the Prepaid College Trust.

Tuition Plans. The Prepaid College Trust offers three tuition plans: the University Plan (one semester or one, two, three, or four years); the Community College Plan (one or two years of community college); and the Two-Plus-Two Plan (first two years of the Community College Plan with two subsequent years of the University Plan).

Separate Accounting. There is a separate Account for each Contract. In addition, separate accounting records that track payments, fees charged and/or paid, and Benefits and/or refunds or reduced refunds paid are maintained for each Account Holder. However, the mere existence of an Account does not create a right to, or interest in, any portion or share of Prepaid College Trust assets or earnings.

Ownership. An Account may have only one Account Holder.

Account Holder Successor. The Account Holder Successor becomes the Account Holder if you die or are declared legally incompetent. You may designate an Account Holder Successor on the Enrollment Form or otherwise in writing or change a previous designation by providing us with written notice.

Right to Information. To protect your privacy, Account information is provided only to the Account Holder or Custodian. However, you may also direct in writing that someone other than the Account Holder may request and receive information regarding the Account.

Documents in Good Order. To process any transaction on your Account, all documents necessary to process that transaction must be in good order, which means executed when required and properly, fully, and accurately completed.

Multiple Accounts/Purchase of Additional Years. You may have more than one Account for a Beneficiary and you may buy an additional semester or years for the same Beneficiary. However, no more than seven years of Tuition may be purchased for the same Beneficiary, with no more than five years purchased on a single Account. No more than one year or two semesters may be purchased for the same Academic Year. You may buy additional year(s) for your Beneficiary at any time during the year. If the purchase takes place outside of an Enrollment Period, the prices for the previous Enrollment Period will be in effect.

You will maintain the original Contract and Account number, as well as enter into a new Contract and receive a new Account number for the additional semester(s) or year(s). A separate Enrollment Form and an Enrollment Fee must be submitted.

UGMA/UTMA. You may open your Account with proceeds of an UGMA/UTMA account. To do so, you must indicate on the

Enrollment Form that the contributions to the Account are liquidated UGMA/UTMA assets. The minor will become the Account Holder and Beneficiary. The Account must also have a Custodian until the Beneficiary reaches the age of majority under the terms of the UGMA/UTMA account. Unlike other Accounts in the Prepaid College Trust, before the age of the Beneficiary’s majority, the Beneficiary and Account Holder cannot be changed and distributions cannot be made other than for the benefit of that Beneficiary. Therefore, any discussion in this Enrollment Kit regarding the transfer of your Account to another Beneficiary applies to an Account funded from an UGMA/UTMA only upon the Beneficiary reaching the age of majority. Any additional contributions to this type of Account will be treated in the same manner. The Custodian retains the capacity to act on behalf of the Account until he or she informs the Prepaid College Trust that the terms of the original UGMA or UTMA have been satisfied.

Coverdell Education Savings Account. You may open your Account with the proceeds of a Coverdell Education Savings Account. Please indicate on the New Account Enrollment Form or with any additional investments that the assets were liquidated from this kind of an account. Unlike UGMA/UTMA accounts, the Beneficiary may be changed to a Member of the Family of the Beneficiary of the Coverdell Education Savings Account. Making distributions from a Coverdell Education Savings Account to fund an Account for the same Beneficiary is not a taxable transaction. Consult your tax advisor for more information.

U.S. Savings Bonds. In certain cases, you may redeem qualified U.S. Savings Bonds under the Education Tax Exclusion and open your Account with the proceeds. Please visit treasurydirect.gov for more information.

Article IV — Contract PaymentsPayment Options. The Prepaid College Trust has five payment options:

1. Lump Sum Payment. A one-time payment that covers the full amount of the Contract.

2. Annual Payment. Equal yearly payments for a designated number of years.

3. Five-Year Monthly Payment. 60 equal monthly payments.

4. Extended Monthly Payment. Equal monthly payments made through December of the year before the Beneficiary’s projected year of high school graduation or year of Initial Benefit Eligibility.

5. Down Payment Option. A down payment of 25%, 40%, or 55% of the lump sum amount. The remaining amount is paid in a designated number of equal monthly or annual payments.

At any time, you may elect to pay at least 25% of the payoff amount and reduce the amount or number of subsequent payments. You must affirmatively request that your future payment schedule be adjusted. This significant payment will not affect your next payment due date.

You may also make payments in advance or pay your Account in full at any time. Payments made in advance will automatically be applied to your outstanding contract balance. We may also approve other payment schedules in our sole discretion.

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You may change the payment option at any time upon written request, subject to any administrative fees. In the event you are due a refund for overpayment on this Contract, upon written request, we will refund any overpayment. We will not, however, refund any earnings on an overpayment. See Article VI – Termination, Transfer and Refund.

Payment Method. Payments can be made by check, money order, wire transfer, electronic funds transfer on either an automatic or one-time basis, or payroll deduction. All payments must be made in U.S. dollars; checks must be drawn on U.S. banks. If you make a payment by check, money order, wire transfer, or electronic funds transfer, we reserve the right, subject to applicable law, to restrict refund or distribution of that payment from your Account for up to 14 days after the funds are deposited. You may change payment methods at any time upon written request. We may also approve other payment methods in our sole discretion.

Electronic Payment Cancellation. We will cancel any electronic payment upon receiving notice from our bank of invalid bank account information.

Returned Payments. We reserve the right to cancel any electronic payment after receiving (2) returned payment notices from our bank.

Due Dates. Payments are due in the amounts stated on the Schedule of Prices and Fees and on the Certificate of Tuition Benefits and are due on dates specified below. In order to avoid late fees, you are responsible for making all payments when due, regardless of the receipt of coupons or invoices.

We do not provide notice of late payment.

1. Lump sum payments are due on August 1, 2020.

2. The first annual payment is due on August 1, 2020. All subsequent payments are due on each succeeding August 1 for the designated number of years.

3. The first monthly payment (five-year and extended) is due on August 1, 2020. All subsequent payments are due on the first day of each succeeding month for the designated number of months.

4. The down payment and the accompanying first monthly or annual payment are both due on August 1, 2020. All subsequent annual payments are due on August 1 of each succeeding year for the designated number of years. All monthly payments are due on the first of each month for the designated number of months.

5. If you are establishing an Account as a new enrollment that is permitted outside of an Enrollment Period, the first payment is due 60 days from the date on which the Prepaid College Trust has received a completed Enrollment Form and any required documentation is complete.

6. If you are changing your payment option, the first payment is due on the first of the month succeeding the change.

Fees. You may be charged fees in amounts we determine, including a non-refundable Enrollment Fee for each Account, late fees, fees for changes, and other administrative fees imposed by us. These fees are set forth in the Schedule of Fees in the Disclosure Statement, of which this Contract is a part.

We may, in our sole discretion, change the fees associated with a particular transaction from time to time. Late fees are assessed on all payments if not received within 15 days of the due date.

Recontributions. If money is distributed from the Prepaid Trust to pay for Qualified Higher Education Expenses and the Beneficiary receives a refund from the Eligible Educational Institution, the amount of the refund, or the amount distributed by the Prepaid Trust, whichever is less, may be re-contributed within 60 days of the date of the refund.

Rollovers of Assets from Another Qualified Tuition Program. You can transfer assets for the same Beneficiary from another Qualified Tuition Program to the Prepaid College Trust.

This type of transfer is commonly referred to as a rollover. Rollovers for the same Beneficiary are restricted to one every 12 months. The Account Holder and/or the previous Qualified Tuition Program must provide the Prepaid College Trust with an accurate allocation of principal and earnings on the previous account for application to the new Account, otherwise the entire rollover contribution will be treated as earnings.

Priority of Payments. Your payments will be applied to your Account in the following order: fees, interest, and principal.

Missed Payments. We reserve the right to terminate an Account for missed payments based on the following schedule:

• Failure to Make a Payment. If no payment is received within 60 days of the first payment due date of this Contract, you will be in default and deemed delinquent. If no payment is received within 90 days of the first payment due date of this Contract, the Account will be canceled and can only be reinstated at your request accompanied by full payment of all outstanding amounts due, subject to our approval.

• Missed Payments. If a payment has been made but subsequent payments are missed, your Account will be in default after 30 days of nonpayment and be deemed delinquent. If no payment has been received within 180 days of the last payment, you may receive a letter warning you of the potential cancellation of your Account. If no payment is received within 210 days of the last payment, your Account will be canceled and can only be reinstated at your request accompanied by full payment of all outstanding amounts, subject to our approval.

• Unpaid or Partial Payments and Fees Resulting in Partial Benefits Payments. Once distributions begin from an account, no additional payments to that account will be accepted. If your Account has partial and/or missed payments, unpaid late fees, and/or administrative fees, we, in our sole discretion, may choose to make a partial Benefits payment, commensurate with the Benefits that have been purchased. If a partial Benefits payment is made, it would typically be made after all other full semesters purchased have been distributed. This is because there may be timing issues associated with the first Benefits payment, since the payment may be due to the college before the last scheduled Contract payment. Upon the final distributions, which may be a partial distribution, your account will be closed.

Annual Statements. You will receive an Annual Statement of Account for each Account during the first quarter of the calendar year. The Annual Statement will show your payments and any Benefits that have been paid on the Account. You will

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also receive a confirmation each time you establish or change an automatic contribution. You have 120 days after receiving an Annual Statement or a confirmation to inform us if any information in the Annual Statement or confirmation is incorrect. After 120 days, we will consider the information in the Annual Statement and/or confirmation to be correct and binding upon you and your Beneficiary.

Article V — Benefits Benefits must be used to pay for a normal full-time (or part-time, as described below) course load for the number of semesters or years of undergraduate education specified in the Tuition plan you select and pay for under this Contract. You can start using Benefits beginning with each fall semester of the projected enrollment year(s) you have purchased, as identified on your Certificate of Tuition Benefits. Please review this benefit section in full to understand the minimum and maximum benefit available under your Contract.

Benefits Payable:

1. Maryland Public College: If your Beneficiary enrolls in a four-year Maryland Public College as a full-time student, the Prepaid College Trust will pay the full in-state Tuition for a University Plan or the full in-county Tuition if your Beneficiary enrolls in a two-year Maryland Public College (community college) for a Community College Plan.

2. Private or Out-of-State: If your Beneficiary enrolls in an Eligible Institution that is private or out-of-state as a full-time student, the Prepaid College Trust will pay the actual Tuition each semester (or the equivalent) up to a maximum of one half of the Weighted Average Tuition in the tuition plan you purchased or your Minimum Benefit, whichever is greater.

Note: If your Tuition for the private or out-of-state Eligible Institution is less than the Weighted Average Tuition, you will only receive the Tuition. If Tuition is less than your Minimum Benefit, however, you may submit documentation of Qualified Higher Education Expenses and receive reimbursement up to your Minimum Benefit.

Benefits are paid on a semester by semester basis (or the equivalent applicable to a particular Eligible Institution). All annual figures are to be divided across semesters (or the equivalent applicable to a particular Eligible Institution).

Minimum Maturity. This Contract must be in effect for at least three years before Benefits will be paid. Benefits will be paid no earlier than the first fall academic semester of the Initial Benefit Eligibility year at an Eligible Institution following the three-year anniversary of the effective date of your Contract.

Maximum Benefits. The Prepaid College Trust will not pay for more than 15 credit hours for each semester (or the equivalent applicable to a particular institution). Under no circumstances will the Prepaid College Trust pay for more than two Mandatory Fees (or the equivalent) for each year of Benefits purchased for a Beneficiary, with the exception of the Minimum Benefits calculation.

If Tuition or other Qualified Higher Education Expenses are more than the Benefits paid by the Prepaid College Trust, you are or your Beneficiary is responsible for the difference.

Minimum Benefits. Minimum Benefits are defined as payments duly made under this Contract plus a rate of return equal to a monthly rate of return of a U.S. Government Security with a constant maturity of one year minus 1.2%. The rate of return will never be less than zero. Notwithstanding any other provisions of this Contract, in the event that Tuition at an Eligible Institution is less than your Minimum Benefits, you may use the difference for other Qualified Higher Education Expenses such as room and board and books.

Half-Time Benefits. In order to receive Benefits, your Beneficiary must be enrolled at least half-time at the Eligible Institution. Half-time is defined as at least one-half of the minimum number of credits necessary to be considered a full-time student by the Eligible Institution. If your Beneficiary attends a Maryland Public College, the Prepaid College Trust will pay one-half of the normal full-time in-state Tuition for a University Plan (or in-county Tuition for a Community College Plan) or the actual Tuition charged by the Eligible Institution to the student, whichever is less.

If a student attends an Eligible Institution that is private or out- of-state, the Prepaid College Trust will pay one-half of the Benefit for a full-time student per semester or the actual Tuition charged by the Eligible Institution to the student, whichever is less. If the Prepaid College Trust’s payment does not cover the entire Tuition cost to the student, you are or your Beneficiary is responsible for the difference.

Multiple Institution Enrollment. A beneficiary may enroll in multiple institutions to meet the minimum criteria for using Benefits. All required documentation must be submitted together in good order to be accepted. Please refer to the Benefits Claim Form (available on our website) for specific instructions and documentation required for the payment of Benefits for a multiple institution enrollment. Any Benefit received for this type of enrollment cannot exceed the Benefit to which you are entitled under your Contract for a semester (or equivalent applicable to the particular Eligible Institutions).

Delayed Benefits. Delayed Benefits may occur if an Account Holder elects not to fully use Benefits for a semester for which they are otherwise eligible for Benefits. Delayed Benefits may also occur under certain circumstances when applying Benefits from a University Plan to Community College Tuition. You may apply Delayed Benefits toward future Tuition. The Prepaid College Trust will pay the amount it would have otherwise paid the Eligible Institution or the actual cost, whichever is less.

Unused Benefits. Unused Benefits may occur if the Beneficiary received a Scholarship, grant, or tuition remission, or graduates early from college, in which case the Account Holder may request a reduced refund. You may also apply Unused Benefits to pay Qualified Higher Education Expenses. When Unused Benefits are used to pay Qualified Higher Education Expenses, the Prepaid College Trust will pay the amount it would have otherwise paid the Eligible Institution or the actual cost of the Qualified Higher Education Expenses, whichever is less. Unused Benefits are always available for a refund or reduced refund in accordance with Article VI.

Graduate Benefits. In order to use Unused Benefits or Delayed Benefits to pay for graduate school, the Beneficiary must be enrolled at an Eligible Institution, taking at least one graduate

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level course as part of a graduate degree program. If you elect to have graduate Benefits paid, they will be based on the Weighted Average Tuition of the Maryland Public Colleges in the tuition plan selected. You may use up to the entire amount of Unused Benefits or Delayed Benefits towards the actual Tuition charged by the Eligible Institution.

Requesting Benefits. Only the Account Holder (or the Custodian, if applicable) may request Benefits, Delayed Benefits, or Unused Benefits, unless a valid court order directs the Trust otherwise. Except for Delayed or Unused Benefits, no more than one semester (or the equivalent for the particular Eligible Institution) of Benefits may be used for a Beneficiary in any semester (or applicable equivalent).

To claim Benefits, Delayed Benefits, and/or Unused Benefits, you may use a Benefits Claim Form (available on our website). This form must be completed, signed and submitted with the required documentation. Benefits, Delayed Benefits, and/or Unused Benefits payments are paid in U.S. dollars and will be sent via first class U.S. Mail.

When requesting benefits for a foreign school with an itemized billing statement in a foreign currency, Prepaid Trust benefits are calculated using the exchange rate in effect on the date the statement was issued. Other than to Eligible Institutions located outside of the U.S., payments will not be made to non-U.S. addresses.

Non-Credit Courses. Any non-credit course taken by a Beneficiary will be considered to be part of the normal full-time or part-time course load covered by the Benefits payable under this Contract. No additional full or partial years of Benefits will accrue to a Beneficiary in the event that non-credit courses are included in any of the Benefits payable under this Contract.

Summer Courses/Winter Courses. In order to use Benefits for summer/winter term courses, you must have Delayed or Unused Benefits and your Beneficiary must be enrolled on at least a half-time basis as defined by the Eligible Institution.

Certificate Programs. Certificate or non-degree granting programs are not eligible for Benefits.

Selected Eligible Educational Institution Not Covered by Tuition Plan. If the Beneficiary enrolls at an Eligible Institution that is different from the tuition plan for your Account, your Benefit will equal the Weighted Average Tuition of your current tuition plan. Any remaining Benefit for the Academic Year will become a Delayed Benefit.

Contract Conversion. Prior to using any Benefits, you may convert your Contract to a different tuition plan. To convert your Contract, you must complete the appropriate form and pay any required fees. As a result of the conversion, we will revalue this Contract, and you may be required to make additional payments or you may receive a refund for any resulting overpayment. Please be advised that a conversion may have tax consequences. Please consult with your tax advisor for specific details.

Some examples of common conversions are:

• 1-Year University Plan to 2-Year Community College Plan;

• 1- Year Community College Plan to a 1-Semester University Plan;

• 2-Year Community College Plan to a 1-Year University Plan;

• 2-Year Community College/2-Year University Plan to a 3-Year University Plan.

Calculations. We may develop other methods for the calculation of Benefits payable under Contracts if we determine that it is necessary to provide consistent Benefits. No such changes may adversely alter the fundamental rights and obligations of the parties to this Contract, except to the extent necessary to assure compliance with applicable state or federal laws or regulations or to preserve favorable tax treatment to you, your Beneficiary, Maryland 529, or the Prepaid College Trust.

Time Limits. The Beneficiary has the number of years purchased in the Account plus 10 years to use all Benefits. This time can be extended for any active service in the U.S. military. Absent a waiver, failure of the Beneficiary to use all Benefits within the designated time period will be deemed a decision by the Beneficiary not to attend an Eligible Institution and will result in the termination of the Account, pursuant to the provisions of Article VI. In addition to the requirements of this Article, we may request other information and/or modify or apply specific due dates.

Article VI — Termination, Transfer, and RefundTermination. You can terminate this Contract upon written notice to us and receive a refund or reduced refund. Upon receipt of such notice, we will determine the amount of any refund or reduced refund pursuant to the terms of this Contract. There are tax consequences associated with a decision to terminate your Account. You should consult with your tax advisor regarding the tax consequences of terminating your Account. See Key Federal Tax Issues and Key State Tax Issues in Article VIII of the Disclosure Statement.

This Contract will terminate 10 years after your Beneficiary’s year of projected enrollment/Initial Benefit Eligibility plus the number of years purchased in the Contract(s). This time can be extended for any active service in the U.S. military. Upon termination, you will have the option to:

• Request a waiver to extend the time period allowed to use Benefits. Any waiver request is subject to Board approval, in our sole discretion; or

• As described below:

- Rollover or transfer your Account to the Maryland College Investment Plan or another Qualified Tuition Program; or

- Take a reduced refund.

Unless a waiver is granted, you may no longer claim Benefits under the Contract. The Prepaid College Trust will retain any earnings obtained after the Contract has been terminated.

If we determine that either you or the Beneficiary has made any material misrepresentation related to the Contract, we, in our sole discretion, may terminate the Contract. In this case, we will refund actual payments made less operating expenses.

Rollovers to Other Qualified Tuition Programs. Upon notification in writing, you may transfer your Account to another Qualified Tuition Program. Based on IRS regulations,

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rollovers for the same Beneficiary are restricted to one time in a 12-month period.

• A Contract in existence for less than three years as measured from the first payment due date. The transferable amount will equal the actual payments made to the Prepaid

College Trust plus or minus 75% of the Trust Returns as applied to the contract payments, less operating expenses and any Benefits used.

• A Contract in existence for three years or more as measured from the first payment due date. The transferable amount will equal the actual payments made to the Prepaid College Trust plus or minus 100% of the Trust Returns applied to the contract payments, less operating expenses and any Benefits used.

• Transfers within Maryland 529. The transferable amount for transfers from the Prepaid College Trust to the Maryland College Investment Plan will equal the actual payments made to the Prepaid College Trust plus or minus 100% of the Trust Returns applied to the contract payments, less operating expenses and any Benefits used, regardless of how long the Contract has been in effect.

Rollovers to a Qualified Achieving a Better Life Experience (“ABLE”) Program. Upon notification in writing, you may transfer your Account to a qualified ABLE Program established pursuant to Section 529A of the Internal Revenue Code allowing Eligible Individuals to save for Qualified Disability Expenses. Based on IRS regulations, rollovers for the same Beneficiary are restricted to one time in a 12-month period. The transferable amount of transfers to a qualified ABLE program will equal the actual payments made to the Prepaid College Trust plus or minus 100% of the Trust Returns applied to the contract payments, less operating expenses and any Benefits used, regardless of how long the Contract has been in effect. Please note that the receiving ABLE account is subject to an annual contribution limit, currently $15,000. Federal law requires that rollovers from a Qualified Tuition Program to an ABLE account take place by December 31, 2025.

Refund. Refunds are only given at your written request, with an original signature, under the following circumstances:

• Death or Disability of the Beneficiary.1. Beneficiary Enrolled at Eligible Institution.

The refund will be the amount that would have otherwise been paid directly to the Eligible Institution, less any Benefits used.

2. Beneficiary Not Enrolled at Eligible Institution. If the Beneficiary has graduated from high school, the refund will be equal to the Weighted Average Tuition within the tuition plan. If the Beneficiary has not yet graduated from high school or the death or Disability occurs prior to the year of Initial Benefit Eligibility, the refund will be the actual payments made to date, plus or minus 100% of the Trust Returns applied to the contract payments, less operating expenses.

• Scholarship, Grant or Tuition Remission. The refund will be up to the amount that would have otherwise been paid directly to the Eligible Institution.

Reduced Refund. Reduced refunds are given under all other circumstances. The reduced refunds discussed below include a financial penalty on Trust Returns in order to maintain the actuarial soundness of the Prepaid College Trust.

• A Contract in existence for less than three years as measured from the first payment due date. The reduced refund will equal the actual payments made less operating expenses and any Benefits used, plus or minus 50% of the Trust Returns applied to the contract payments.

• A Contract in existence for three years or more as measured from the first payment due date. The reduced refund will equal the actual payments made less operating expenses and any Benefits used, plus or minus 90% of the Trust Returns applied to the contract payments.

Delayed Benefits and/or Unused Benefits Available for Refund. At your written request, Delayed Benefits and/or Unused Benefits remaining in an Account will be refunded in accordance with this Article VI.

Determination of Trust Returns for Transfers, Refunds, and Reduced Refunds. Trust Returns applied to contract payments are calculated by first multiplying the Account principle by 2.5%, the Trust’s operating expenses. Second, the result is subtracted from the Account balance. Third, this reduced Account balance is then multiplied by the Prepaid College Trust Returns taken as of the most recent quarterly investment performance report. Fourth, the total reached is multiplied by the number of full years the Account has been open. A percent of the Earnings (between 50% and 100% depending on the circumstances and as described in VI) will be used in the determination of a transfer, refund, or reduced refund.

Board’s Right to Delay. In order to preserve the actuarial soundness of the Prepaid College Trust, we reserve the right to delay a rollover, refund, or reduced refund for a period of time not to exceed one year. To date, we have not delayed any refund or reduced refund.

Article VII — Substitutions General. A change in Beneficiary, Account Holder, or Custodian is effective only when all required documents are received in good order and processed. A Beneficiary change or transfer of assets may be denied or be limited if it causes one or more Accounts in the Prepaid College Trust or the Maryland College Investment Plan to exceed the maximum aggregate allowable Account balance for a Beneficiary.

New Beneficiary. Provided that at least one semester of Benefits remains on your Account, you may change the Beneficiary of all the Benefits remaining on your Account to a Member of the Family of the Beneficiary at any time, unless the Account has been funded with the proceeds from an UGMA/UTMA and the current Beneficiary has not reached the age of majority. While generally not permitted, if you wish to transfer only a portion of the Benefits remaining on your Account, you must submit your request in writing and Maryland 529 will review such request for whether extenuating circumstances exist such that a partial transfer should be permitted.

If the new Beneficiary is not already enrolled in the Prepaid College Trust, all required identification information must be provided. We will then calculate the new payment amount given the change, if any, in projected college enrollment or Initial Benefit Eligibility year. As a condition of such Beneficiary change, you are required to pay any required additional costs. All Beneficiary changes must be requested in writing and include

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all information we may require. If you have overpaid, you can be refunded for your overpayment or transfer the overpayment to another Member of the Family of the original Beneficiary, or transfer to another eligible program. If you change the Beneficiary, all terms and conditions of this Contract continue to apply, even though the original Beneficiary has been changed.

New Account Holder. You may transfer control of the Contract to a new Account Holder unless the Account has been funded with the proceeds from an UGMA/UTMA account. All transfers must be requested in writing and include all required information. However, your right of control may not be sold, transferred, used as collateral, or pledged or exchanged for money or anything of value. We may require affidavits or other evidence to establish that such a transfer is non-financial in nature. Your right of control may also be transferred under an appropriate court order. If you transfer control of an Account to a new Account Holder, the new Account Holder must agree to be bound by the terms and conditions of this Contract and provide all necessary identification information. Transferring an Account to a new Account Holder may have significant tax consequences. Before doing so you should consult with your tax advisor regarding your particular tax situation.

Removing or Changing a Custodian on Accounts not funded from an UGMA/UTMA. The Custodian will no longer have the authority to act on an Account once the Account Holder reaches the age of majority under Maryland law. Prior to the Account Holder reaching the age of majority, the Custodian may be changed at any time upon providing us with written notice. The notice must be from the current Custodian or include a valid court order appointing another person as Custodian. If the current Custodian dies or is declared legally incompetent prior to the Account Holder reaching the age of majority, then the person legally authorized to act on behalf of the minor Account Holder must appoint a new Custodian.

Prior to acting on the Account, we may require documentation from new Account Holders and/or Custodians to certify that they agree to the terms and conditions of the Prepaid College Trust.

Removing or Changing a Custodian on Accounts funded from an UGMA/UTMA. We must be notified in writing by the Custodian when the Account Holder reaches the applicable age of majority under the terms and conditions of the original UGMA/ UTMA account (under Maryland law, currently 18 years old for an UGMA and 21 years old for an UTMA). A valid court order may also be submitted that stipulates the removal of the Custodian. The Custodian may be changed at any time upon providing us with written notice. The notice must be from the current Custodian or include a valid court order appointing another person as Custodian. If the current Custodian dies or is declared legally incompetent, then the person legally authorized to act on behalf of the minor Account Holder must appoint a new Custodian.

Recovery of Incorrect Amounts. If an incorrect amount is paid to or on behalf of an Account Holder or Beneficiary, we may recover the incorrect amount from the Account Holder or Beneficiary, or adjust any remaining Account balance to correct the error. The Board, in its discretion, may waive the processing of adjustments from clerical errors or other cases that are de minimis in amount.

Article VIII — General Provisions Payments to You. We typically make payments (Benefits, Delayed Benefits, Unused Benefits, refunds, and reduced refunds) by check.

A Medallion Signature Guarantee is required for payment requests of $7,500 or more, a check sent to an address not on file, or a reduced refund request from any Account that was opened online.

We reserve the right, however, to require a Medallion Signature Guarantee at any time for lesser amounts or for other requests in our sole discretion.

We will make a payment (Benefits, Delayed Benefits, Unused Benefits, refunds, and reduced refunds) to one or more of the following payees:

• Account Holder;

• Beneficiary;

• Eligible Institution for the benefit of the Beneficiary;

• Beneficiary and Eligible Institution, jointly; or

• Estate of the Beneficiary.

Additional payee options may be added from time to time. We must have the Beneficiary’s Social Security number before we can process a distribution from your Account. If you are receiving Benefits or Delayed Benefits or using Unused Benefits, it is your responsibility to confirm that the school to which the payment is made is an Eligible Institution.

Other than to Eligible Institutions located outside of the U.S., payments will not be made to non-U.S. Addresses.

Changes to an Account. All notices, changes, options, and elections requested by you under this Contract must be in writing, signed by you, and received by us. You must ensure the accuracy of any documentation submitted to us. We are not responsible for the accuracy of any documentation. If acceptable to us, notices, changes, options, and elections relating to your Account will take effect within a reasonable amount of time after we have received the documentation, unless we agree otherwise.

Address Changes. To change your address or the address of any person associated with your Account, log on to your Account at Maryland529.com and follow the instructions to change your address or download and complete the Account Services Form available on our website.

Account Holder Changes. For all Accounts opened online and for certain Accounts where an Account Holder’s signature is not readily available, a Medallion Signature Guarantee or notarized signature from an FDIC insured institution is required for transfers, rollovers, and certain other Account changes.

Notices and Statements. All correspondence will be mailed to the Account Holder’s address of record. Account Holders are responsible for ensuring the address of record is current.

Changes to the Statute and Regulations. The General Assembly of the State may, from time to time, pass legislation, which may directly or indirectly affect Maryland 529, including the terms and conditions of the Maryland 529 Prepaid College Trust and this Disclosure Statement.

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Changes to the Contract. We may amend the terms of this Contract from time to time to comply with changes in the law or regulations or if we determine it is in Maryland 529’s and/or the Prepaid College Trust’s best interest to do so. However, we will not retroactively modify existing Contract provisions in a manner adverse to you or your Beneficiary, except to the extent necessary to assure compliance with applicable state (including the Enabling Legislation) and federal laws or regulations or to preserve the favorable tax treatment to you, your Beneficiary, Maryland 529, or the Prepaid College Trust. We will promptly notify you of such amendments, and you will be bound thereby unless you notify us in writing of your intent to terminate the Contract within 60 days of the date of the notice.

Guide to Interpretation. This Contract is intended to qualify for the tax benefits of Section 529 of the Code. Not withstanding anything in this Contract to the contrary, this Contract will be interpreted and/or amended to comply with the requirements of that section and applicable regulations.

Board Discretion. In order to comply with changes in the law or regulations, carry out our obligation as fiduciary of Maryland 529 under the Enabling Legislation, and/or maintain the actuarial soundness of the Prepaid College Trust, we may, at any time in our sole discretion, determine the acceptance of an Enrollment Form and the Contract prices applicable to the related Account or provide a waiver to specific provisions of this Contract. Any decision or waiver may apply to one, a selected number, or all Accounts and may be for a limited duration. In addition, pursuant to the Enabling Legislation, in certain circumstances, if we determine that the market value of the assets of the Prepaid College Trust exceeds the amount needed to satisfy all scheduled payments of Benefits currently due or scheduled to be due under all Contracts by 30% or more, in our sole discretion, we may provide for a rebate from the excess to Account Holders of existing Contracts. Any rebate would be an amount determined solely by us.

Factual Representation. All factual determinations regarding your or your Beneficiary’s residency, Disability, the existence of hardship, and any other factual determinations regarding this Contract will be made by us based on the facts and circumstances of each case.

Severability. In the event that any clause or portion of this Contract is found to be invalid or unenforceable by a court of competent jurisdiction, that clause or portion shall be severed from this Contract and the remainder of this Contract shall continue in full force and effect as if such clause or portion had never been included.

Precedence. In the event inconsistencies are found in the documents governing the Prepaid College Trust, the order of precedence from most governing to least governing will, except as to provisions that expressly provide otherwise in the Declaration, be as follows: (i) the IRC, (ii) the Enabling Legislation and other Maryland law; (iii) the Declaration; (iv) Board policy; and (v) this Contract. In addition, if there are any inconsistencies between this Contract and the Enrollment Form and/or the Certificate of Tuition Benefits, the terms of this Contract shall prevail.

Claims. Any claim by you or your Beneficiary against the Board pursuant to this Contract shall be made solely against the assets of the Prepaid College Trust. The obligations of the Prepaid College Trust under this Contract are payable out of monies received from you and earnings from investments, and no recourse shall be had by you or your Beneficiary against any of the Plan Officials (defined below) in connection with any right or obligations arising out of this Contract. This Contract is not an obligation of the State, and neither the full faith and credit nor the taxing power of the State can be pledged to the payment of Benefits hereunder. All obligations hereunder are legally binding contractual obligations of the Prepaid College Trust only, a program of Maryland 529, an independent agency of the State of Maryland.

Legislative Guarantee. The Enabling Legislation provides that in the event that funds in the Prepaid College Trust are insufficient to pay full Benefits in any given year, the Governor is required to include an amount in the following year’s State budget to fully pay Benefits. As with the entire State budget, the Maryland General Assembly determines the final amount of the appropriation. If the Maryland General Assembly does not fully fund the budget request, we may adjust the terms of subsequent or current Contracts to ensure continued actuarial soundness of the Prepaid College Trust. Subject to the rights of Account Holders, any amount paid to the Prepaid College Trust from the State must be repaid to the State without interest in equal amounts over the following two fiscal years.

Applicable Law. This Contract shall be interpreted solely under the laws of the State of Maryland and applicable federal law, including Section 529 of the Code, as amended, without regard to the application of foreign laws.

Account Holder’s Representations and Acknowledgements. I, as Account Holder, represent and warrant to, and acknowledge and agree with, Maryland 529 and the Prepaid College Trust regarding the matters set forth in this Contract, including that:

• I have carefully reviewed all information provided by the Board with respect to Maryland 529 and the Prepaid College Trust, including the Disclosure Statement included in the Enrollment Kit.

• I have been given an opportunity to ask questions and receive answers concerning the terms and conditions of the Prepaid College Trust and this Contract.

• I have been given an opportunity to obtain any additional information needed to complete my Enrollment Form and/or verify the accuracy of any information I have furnished.

• I cannot use my Account as collateral for any loan. I understand that any attempt to use my Account as collateral for a loan would be void. I also understand that neither Maryland 529 nor the Prepaid College Trust will lend any assets to my Beneficiary or to me.

• Except as described in this Contract, I will not assign or transfer any interest in my Account. I understand that, except as provided under Maryland law, any attempt to assign or transfer that interest is void.

• I am and my Beneficiary is either a citizen or a resident alien of the United States.

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Operations and Additional InformationRISK FACTORSYou should carefully consider the information in this section, as well as the other information in this Disclosure Statement, before making any decisions about opening an Account or making any additional contributions. We do not provide legal, financial, or tax advice. You should consult an attorney or a qualified financial or tax advisor with any legal, business, or tax questions you may have.

Investments May Not Meet Objectives; Accounts Are Not Insured. As with any investment, the rates of return and the amount of appreciation and depreciation of the Prepaid College Trust’s investments are unpredictable. Therefore, we cannot provide any assurance that the investments selected by the Board will meet their objectives. Also, the Board’s investments are not deposits or obligations of, or guaranteed by, any depository institution and are not insured by the Federal Deposit Insurance Corporation, Federal Reserve, the State of Maryland or any other government agency.

Market Uncertainties. Due to market uncertainties, the overall market value of the Prepaid College Trust is likely to be highly volatile and could be subject to wide fluctuations in response to factors such as regulatory or legislative changes, worldwide political uncertainties, and general economic conditions, including inflation and unemployment rates. All of these factors are beyond our control and may cause the overall value of the Prepaid College Trust to decrease, regardless of our performance or your selection of tuition plan. Any decrease in value could result in an actual or actuarial (unrealized) loss to the Prepaid College Trust. See Trust and Legislative Guarantees on page 14.

Suitability. We make no representation regarding the suitability or appropriateness of the Prepaid College Trust as an investment. Other types of investments may be more appropriate depending upon your financial status, tax situation, risk tolerance, age, investment goals, savings needs, and the investment time horizons of you or your Beneficiary.

Internal Revenue Service Regulations Not Final. As of the date of this Disclosure Statement, the IRS has not issued final

tax regulations regarding programs satisfying the requirements of Section 529 of the Code. In addition, we have not sought nor have we received a private letter ruling from the IRS regarding the status of the Prepaid College Trust under Section 529 of the Code. We may, in our sole discretion, determine to seek a ruling in the future.

Discretion of the Board. Neither you nor your Beneficiary may direct the investment of any contribution to the Prepaid College Trust or any earnings thereon either directly or indirectly. The Board, as trustee of the Prepaid College Trust, has the sole discretion to determine how to invest payments made on Contracts. As required by Maryland law, the Board has adopted a Comprehensive Investment Plan (Investment Plan) that outlines its long-term investment goals for providing the funding of future Benefits and the administration of the Prepaid College Trust. We currently direct the investment of Contract payments into separately managed accounts, commingled funds, limited partnerships, and mutual funds. The Board may, in its sole discretion, determine to amend its Investment Plan at any time, including investing in other asset types and by using additional or different managers to further diversify its investments.

Effect of Future Law Changes. It is possible that future changes in federal or state laws or court or interpretive rulings could adversely affect Qualified Tuition Programs generally, the terms and conditions of the Prepaid College Trust or your Benefits, even retroactively. Specifically, the Prepaid College Trust is subject to the provisions of and any changes to or revocation of Education Article Title 18, Subtitle 19 and Tax Article, Title 10, Subtitle 2 of the Maryland Annotated Code and Section 529. It is our intention to take advantage of Section 529 of the Code; therefore, the Prepaid College Trust it is vulnerable to tax law changes or court or interpretive rulings that might alter the application of federal and/or State taxes to your particular situation.

Investment Management Services. Maryland law provides Maryland 529 with an exemption from State procurement law for the selection of investment management services for the Prepaid College Trust. While this exemption is designed to reduce investment management fees and enhance net returns, there can be no assurance that the exemption will positively impact net returns.

Cost of Certain Payment Plans. Contract prices are determined based on a number of factors. Specifically, total Contract payments for the monthly and annual payment options are more than the lump sum payment. This is because the monthly and annual payment options take into account the fact that the Prepaid College Trust has a shorter amount of time to generate earnings on your payments. With monthly and annual payments, the Prepaid College Trust does not have the full purchase price available to invest immediately, so it cannot generate the same amount of income as it would with a lump sum payment. As a result, you will pay a greater amount over time for your Benefits than if you make a lump sum payment. In addition, with any tuition plan, your payments may total more than the Tuition currently charged by Maryland Public Colleges.

Refunds and Reduced Refunds. Reduced refunds are calculated based on the amount of time your Contract has been in existence and may be net of investment losses and administrative fees

• I am or my Beneficiary is a Maryland or Washington, D.C. Resident.

• Neither the State of Maryland, the Board, Maryland 529, the Prepaid College Trust, the Board as trustee, any other agency of the State of Maryland, nor any other counsel, advisor, or consultant retained by, or on behalf of, those entities, nor any employee, officer, or official of any of those entities (collectively, the Plan Officials) is liable for a failure of Maryland 529 and/or the Prepaid College Trust to qualify as or to remain a Qualified Tuition Program, including any subsequent loss of favorable tax treatment under state or federal law.

• My statements, representations, warranties, and covenants will survive the termination of my Account.

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associated with your payments on the Contract. See Article VI of the Contract. In addition, in cases of financial detriment to the Prepaid College Trust, the Board reserves the right to delay a refund for a period of time not to exceed one year. To date, the Board has not delayed any refund or reduced refund payments pursuant to this reservation of rights.

Check Expiration. Checks issued by the Maryland Prepaid College Trust expire 90 days after issuance. If your benefit check has expired, please contact a Maryland Prepaid College Trust representative (888.4MD.GRAD) for additional instructions.

Rebates. The Board has the option to rebate excess Trust Returns to Prepaid College Trust participants. By law, rebates would only take place under certain circumstances to ensure the soundness of the Trust. These are: 1) the actuarial surplus is at least 30%; 2) the Trust has not received a loan under the terms of the Legislative Guarantee in the past five years; and 3) if the Trust has received a loan under the terms of the Legislative Guarantee, the Trust has repaid the State.

Any rebate would be an amount determined solely by the Board. There can be no assurance that, if the conditions listed above are met, the Board would elect to offer such a rebate.

Tax Considerations. The federal and state tax consequences associated with participating in the Prepaid College Trust can be complex. You should consult a tax advisor regarding the application of tax laws to your particular circumstances. See Key Federal Tax Issues and Key State Tax Issues.

Securities Laws. Contracts between you and the Board may be considered securities. These Contracts will not be registered as securities, based in part on assurances received by the Board from the staff of the Securities and Exchange Commission that it would not recommend enforcement action if the Contracts were not registered. Prepaid College Trust Contracts have not been registered with the securities regulatory authorities of any state. In addition, neither the Contracts nor the Trust have been registered as investment companies under the Investment Company Act of 1940.

Release of Custodian. For custodial accounts not funded by UGMA/UTMA, the Custodian will no longer have the authority to act on the Account once the Account Holder reaches the age of majority. See Article VII of the Contract for additional information.

Death of Account Holder. The Account will be transferred to the Account Holder’s Successor upon completion of necessary paperwork. If an Account Holder’s Successor has not been named on an Account and the Account Holder dies, the personal representative of the Account Holder’s estate is responsible for naming a new Account Holder.

Death of Account Holder’s Successor. If the Account Holder’s Successor predeceases the Account Holder and the Account Holder fails to designate another Account Holder’s Successor or the Account Holder and Account Holder’s Successor die simultaneously, the personal representative of the Account Holder’s estate is responsible for naming a new Account Holder.

Relationship to Financial Aid. Your Beneficiary may wish to participate in federal, state, or institutional loan, grant, or other programs for funding higher education. If you are the parent of your Beneficiary, assets in the Prepaid College Trust or another 529 plan would typically be included on the Free Application for Federal Student Aid (FAFSA) form as a parental asset, which is assessed at a lower rate than a student’s asset would be when

determining a family’s expected contribution. Assets owned by the parent of a Beneficiary who is not a dependent are not considered for purposes of FAFSA.

In making decisions about eligibility for financial aid programs offered by the U.S. government and the amount of financial aid required, the U.S. Department of Education takes into consideration a variety of factors, including among other things, the assets owned by your Beneficiary and the assets owned by your Beneficiary’s parents. In addition, your Account may be considered when determining eligibility for Maryland State financial aid programs.

Since the treatment of Account assets on the FAFSA may have a material adverse effect on your Beneficiary’s eligibility to receive valuable benefits under financial aid programs, you or your Beneficiary should check the following to determine the impact of an investment in the Prepaid College Trust on need-based financial aid programs:

• the applicable laws or regulations;

• with the financial aid office of an Eligible Institution; and/or

• with your tax advisor.

Relationship of Your Account to Medicaid Eligibility. It is unclear how local and state government agencies will treat Qualified Tuition Program assets for the purpose of Medicaid eligibility. Although there are federal guidelines under Title XIX of the Social Security Act of 1965, each state administers its own Medicaid program and rules could vary greatly from one state to the next. You should consult with an attorney, a tax advisor, or your local Medicaid administrator regarding the impact of an investment in the Prepaid College Trust on Medicaid eligibility.

Rights Reserved. The Trustee, Maryland 529 and their agents reserve the following rights: (1) to refuse or cancel any contract purchase or payment; (2) to freeze any Account and suspend Account services when notice has been received of a dispute regarding the ownership of an Account or of a legal claim against an Account, upon initial notification of an Account Holder’s death (until the Prepaid College Trust or its agent, receives required documentation in correct form), or if there is reason to believe fraudulent activity may occur; (3) to modify or terminate any services at any time; (4) to act on instructions reasonably believed to be genuine; (5) to limit the total number or amount of distributions in a single month and suspend distributions during unusual market conditions; and (6) to involuntarily refund an Account at the value calculated the day the Account is refunded, in cases of suspected fraudulent or illegal activity, or if the Program Manager or its agent is unable, through its procedures, to verify the identity of the person(s) or entity opening an Account.

NAME ________________________________________________________________________________________________________________________________________________________

CITIZENSHIP: 9 U.S. CITIZEN 9 U.S. RESIDENT ALIEN Is the Account Holder a Maryland or DC resident? 9 Yes 9 No

SOCIAL SECURITY OR TAXPAYER I.D. NUMBER ____________________________________________________________ DATE OF BIRTH (MM/DD/YYYY) _______________________________

U.S. STREET ADDRESS (CANNOT BE A P.O. BOX) ______________________________________________________________________________________________________________________

CITY ______________________________________________________________________________________ STATE ______________________ ZIP CODE _______________________________

DAY PHONE ________________________________________ EVENING PHONE ______________________________________ EMAIL ADDRESS ______________________________________

NAME ________________________________________________________________________________________________________________________________________________________

CITIZENSHIP: 9 U.S. CITIZEN 9 U.S. RESIDENT ALIEN Is the Beneficiary a Maryland or DC resident? 9 Yes 9 No

SOCIAL SECURITY OR TAXPAYER I.D. NUMBER ____________________________________________________________ DATE OF BIRTH (MM/DD/YYYY) _______________________________

IF AN ADDRESS IS NOT PROVIDED BELOW, THE ADDRESS OF THE ACCOUNT HOLDER WILL BE USED.

U.S. STREET ADDRESS ___________________________________________________________________________________________________________________________________________

CITY ______________________________________________________________________________________ STATE ______________________ ZIP CODE _______________________________

Account Holder – REQUIRED

Beneficiary (Student) – REQUIRED

Tuition Plan – REQUIRED – Check Only ONE

9 1 Semester University Plan9 1 Year University Plan 9 2 Years University Plan

9 3 Years University Plan 9 4 Years University Plan

9 1 Year Community College Plan9 2 Years Community College Plan 9 Two-Plus-Two Plan

Age or grade as of 9/1/19: 9 Newborn9 Age 1 9 Age 2 9 Age 3

9 Age 4/5 (not in Kindergarten) 9 Kindergarten 9 First Grade 9 Second Grade

9 Third Grade 9 Fourth Grade 9 Fifth Grade 9 Sixth Grade

9 Seventh Grade 9 Eighth Grade 9 Ninth Grade 9 Tenth Grade

9 Eleventh Grade9 Twelfth Grade

Maryland Senator Edward J. Kasemeyer Prepaid College Trust 2019-2020 Enrollment Form

InstructionsType Non-Refundable Fee DeadlineNew: No current Account – includes payment by $75 ($50 online) Complete online or postmark no later than May 31, 2020 Rollover from other 529 plans (except Maryland College Investment Plan)Newborn: Infant under 1 year of age $75 Accepted year-round until the child’s first birthday at prices in effect at time of enrollmentOther: Purchase of additional semesters/years for $20 Accepted year-round current Account Holder and Beneficiary; or New Account if same Account Holder and Beneficiary are currently enrolled in the Maryland College Investment Plan. Please attach MCIP account statement as proof of enrollment.

MAIL this completed form and your non-refundable enrollment fee payable to Maryland Prepaid College Trust (MPCT) to:

P. O. Box 17591, Baltimore, MD 21297-1591 Allow 3 weeks for processing.

Payment Option – REQUIRED

If you choose to make a down payment, check the percentage you wish to make:

Down Payment 9 25% 9 40% 9 55%

Check your preferred payment option:

9 Single Lump Sum 9 5-Year Monthly Payment 9 Extended Monthly Payment 9 Annual Payment

F O R O F F I C E U S E O N L Y $75.00 / $20.00 ___________ AMOUNT ___________ CHECK # ___________ BATCH #

Method of Payment – REQUIRED FOR MONTHLY PAYMENT OPTIONS ONLY

9 ACH – AUTOMATIC BANK DRAFT—Attach voided bank check or preprinted deposit slip. We cannot accept starter checks. If the Account Holder or Custodian is NOT the bank account owner, then the bank account owner must sign below to authorize adding their bank information to this Account.

BANK ACCOUNT OWNER’S SIGNATURE _________________________________________________________________________ DATE (MM/DD/YYYY) _______________________________

BANK ACCOUNT OWNER’S DAY PHONE ____________________________________________________________________________________________________________________________

9 PAYMENT COUPONS 9 PAYROLL DEDUCTION NAME OF EMPLOYER __________________________________________________________________________________________

Custodian – REQUIRED IF ACCOUNT HOLDER IS A MINOR

Demographic Information – OPTIONAL – This information is confidential.

Account Holder’s Signature – REQUIRED

(1) Where did you hear about this Program? (Check only one)9 School9 TV/News Program

9 Employer9 Internet Search

9 Radio9 Media Article

9 Word of Mouth9 Hospital

9 Social Media9 Financial Advisor

9 African-American (non-Hispanic) 9 American Indian / Alaskan Native 9 Asian / Pacific Islander9 Hispanic 9 Multi-Cultural 9 Other 9 White (non-Hispanic) 9 Unknown

9 $20,000 or less9 $80,001 – $100,000

9 $20,001 – $40,0009 $100,001 – $150,000

9 $40,001 – $60,0009 Above $150,001

9 $60,001 – $80,000

(2) Race of Account Holder: (Check only one)

(3) Annual Family Income: (Check only one)

I hereby certify and attest that the information in this enrollment form is accurate and correct. I also certify and attest that I have read, understand and agree to the terms and conditions of the Contract and all terms and conditions provided in the 2019-2020 Prepaid College Trust Disclosure Statement. I understand that Maryland 529, from time to time, may amend the Contract and the Disclosure Statement, and I understand and agree that I will be subject to the terms of those amendments. If I am a Custodian, I am legally authorized to act on the behalf of the minor Account Holder.

__________________________________________________________________________________________________

Signature of Account Holder or Custodian (required) Date

If signing as a Trustee, attach a copy of the trust agreement pages with the trust name and date, the trustee(s) name(s) and the signature page. For a corporation or other entity, attach a copy of the corporate resolution, bylaws, or charter that lists the person(s) authorized to act for the organization.

ATT

ACH

VO

IDED

CH

ECK

HER

E

Account Holder’s Successor – RECOMMENDED

NAME ________________________________________________________________________________________________________________________________________________________

CITIZENSHIP: 9 U.S. CITIZEN 9 U.S. RESIDENT ALIEN Is the Custodian a Maryland or DC resident? 9 Yes 9 No

SOCIAL SECURITY OR TAXPAYER I.D. NUMBER ____________________________________________________________ DATE OF BIRTH (MM/DD/YYYY) _______________________________

IF AN ADDRESS IS NOT PROVIDED BELOW, THE ADDRESS OF THE ACCOUNT HOLDER WILL BE USED.

U.S. STREET ADDRESS ___________________________________________________________________________________________________________________________________________

CITY ______________________________________________________________________________________ STATE ______________________ ZIP CODE _______________________________

DAY PHONE ________________________________________ EVENING PHONE ______________________________________ EMAIL ADDRESS ______________________________________

9 Check this box if the Account is being funded with proceeds from an UGMA/UTMA account. You will not be able to change the Beneficiary.

NAME ________________________________________________________________________________________________________________________________________________________

CITIZENSHIP: 9 U.S. CITIZEN 9 U.S. RESIDENT ALIEN

SOCIAL SECURITY OR TAXPAYER I.D. NUMBER ____________________________________________________________ DATE OF BIRTH (MM/DD/YYYY) _______________________________

U.S. STREET ADDRESS ___________________________________________________________________________________________________________________________________________

CITY ______________________________________________________________________________________ STATE ______________________ ZIP CODE _______________________________

DAY PHONE ________________________________________ EVENING PHONE ______________________________________ EMAIL ADDRESS ______________________________________

9 Check this box if you authorize this person to have access to information on this account.

12/2020

This form will expire on the last business day prior to the beginning of the 2020-2021 Enrollment Period.

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PREPAID COLLEGE TRUST OPERATIONS Contracts. A valid Contract consists of a completed 2019–2020 Enrollment Form, the Schedule of Prices and Fees, the Certificate of Tuition Benefits, the Highlights Booklet, and the Prepaid College Trust Disclosure Statement (including the Contract document, Articles I through VIII of this Disclosure Statement). The Contract creates an obligation for the Prepaid College Trust to pay Benefits according to the terms of the Contract provided that you have made scheduled payments.

Trust and Legislative Guarantees. Payment of Benefits is guaranteed by the Prepaid College Trust. In addition, Maryland law provides that in the event that funds in the Prepaid College Trust are insufficient to pay full Benefits in any given year, the Governor is required to include an amount in the following year’s State budget to fully pay Benefits. As with the entire State budget, the Maryland General Assembly determines the final amount of the appropriation. If the Maryland General Assembly does not fully fund the budget request, the Board may adjust the terms of subsequent or current Contracts to ensure continued actuarial soundness of the Prepaid College Trust. Subject to the rights of the Account Holders, any amount paid to the Prepaid College Trust from the State must be repaid to the State without interest in equal amounts over the following two fiscal years.

Status of Trust Funds. Funds in the Prepaid College Trust are not considered monies of the State and may not be deposited into the General Fund of the State. Funds remaining in the Prepaid College Trust at the end of any fiscal year remain in the Prepaid College Trust.

Contract Prices. Contract prices are determined for each Enrollment Period. To do so, the Board consults with its actuary, currently Gabriel Roeder Smith & Company, who provides an annual soundness valuation. The Board uses the results of its most recent soundness valuation and the most recent tuition trends at Maryland Public Colleges to select projections to be used in calculating Contract prices for the next Enrollment Period.

Payments into the Prepaid College Trust. The Prepaid College Trust is not a savings account. It is a fund that pools your payments with those of other account holders in the Prepaid College Trust and invests them in accordance with its Investment Plan. The investment earnings that the Prepaid College Trust earns on its investments make up the difference between your payments and the payments of other account holders and expected future Tuition costs that the Prepaid College Trust is responsible for paying under your Contract and the contracts of other account holders. Payments you make are deposited into the Prepaid College Trust’s account, which is maintained by Wells Fargo Bank, N.A. and is fully insured. The Board uses the funds in this account to make investments and to pay Benefits, refunds, rollovers, and the Prepaid College Trust’s operating costs, in that order. Separate accounting records are kept for each Account Holder. These records include payments, fees charged and paid, and Benefits, rollovers, or refunds paid.

PLAN GOVERNANCE AND ADMINISTRATIONMaryland 529. The Maryland General Assembly created an independent State agency in 1997 to establish a Qualified Tuition Program under Section 529 of the Code. See the

Education Article of the Maryland Section 18-1901 et seq. Maryland 529’s first Qualified Tuition Program, the Prepaid College Trust, was also created by the General Assembly in 1997 to provide families with an affordable, convenient way to pay in advance for the cost of college and reduce future reliance on debt. Subject to the Governor’s approval, the General Assembly may amend the 1997 statute that created the Prepaid College Trust by passing new legislation.

Legislative History. Bills amending the original legislation with respect to the Prepaid College Trust have been introduced and passed during the 1998, 1999, 2000, 2003, 2004, 2007, 2008, and 2016 Legislative Sessions. These bills have significantly changed and enhanced the Prepaid College Trust by creating tax incentives for Maryland Account Holders and contributors, expanding features, establishing a Legislative Guarantee for the Prepaid College Trust, changing the name of the agency administering the Prepaid College Trust to Maryland 529, exempting Maryland 529 from State procurement laws with respect to the selection of investment managers to invest the assets of the Prepaid College Trust in accordance with the Investment Plan (Procurement Exemption), and authorizing the Board to establish a broker-dealer college investment plan.

The Maryland 529 Board. As required by the Enabling Legislation, the Prepaid College Trust is directed and administered by the Board. The Board consists of 11 members. Six members of the Board (the Maryland State Comptroller, the Maryland State Treasurer, the Secretary of the Maryland Higher Education Commission, the Maryland State Superintendent of Schools, the Chancellor of the University System of Maryland, and the Secretary of Disabilities) serve ex officio. The five remaining members are appointed by the Governor from the private sector; must have significant experience in finance, accounting, investment management, or other areas that can be of assistance to the Board; taken an oath of office; and are required to file annual financial disclosure statements with the State Ethics Commission. Board members receive no compensation for their services to Maryland 529; however, they are entitled to reimbursement for expenses incurred in the performance of their duties. The Board has general and fiduciary responsibility for the Prepaid College Trust as a whole. There are vacancies on the Board from time to time.

Annual Report. The Board is responsible for preparing financial statements for the Prepaid College Trust and retains an independent accounting firm to audit the Prepaid College Trust’s financial statements. The Board is required to submit an Annual Report for Maryland 529 to the Governor and the General Assembly. This report must include financial statements and a complete financial accounting of the Prepaid College Trust and the results of the audit. The Board also prepares an Annual Report Summary and Highlights for Account Holders. The Maryland 529 Annual Report and the Annual Report Summary and Highlights are incorporated by reference into this Disclosure Statement and are available on our website at Maryland529.com or by calling 888.4MD.GRAD (463.4723).

The Declaration of Trust. The Prepaid College Trust has been established pursuant to a Declaration of Trust, which provides that the Board is the sole trustee of the Prepaid College Trust and

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that the Board may appoint its staff to act as its designee with respect to the day-to-day operations of the Prepaid College Trust. Among other things, the Declaration provides that the assets of the Prepaid College Trust shall be used exclusively to make payments to Eligible Institutions and make refund payments, each in accordance with Maryland law and the Contracts; pay expenses of the Prepaid College Trust in the management, protection, investment, and reinvestment of Prepaid College Trust assets; and pay the reasonable and necessary operating expenses of the Maryland 529 Board. The Declaration also provides that the Board shall adopt a comprehensive investment plan and policies as required by Maryland law and may change the plan from time to time as it deems in the best interests of Account Holders and Beneficiaries. Also under the Declaration, the Board is required to conduct periodic actuarial reviews of the Prepaid College Trust as required by Maryland law and must do so by contracting with a qualified actuarial firm to provide specific analyses of Prepaid College Trust assets, liabilities, and forecasts of future income and expenses.

COMPREHENSIVE INVESTMENT PLANIn accordance with Maryland law, the Board has adopted an Investment Plan. This Investment Plan reflects the philosophy of the Board and outlines the Board’s long-term investment goals for providing the funding of future Benefits and the administration of the Prepaid College Trust’s investments.

The Investment Plan also sets forth the Board’s guidelines for evaluating the best combination of investment risk and projected rates of return to achieve the Prepaid College Trust’s required funding priorities. The Board evaluates investment performance with its financial advisor on at least a quarterly basis.

The Board has retained an investment advisor and reviews its Investment Plan at least annually with them. This Investment Plan has the following two objectives:

• To achieve an average annual investment return of 6.3% over the long-term; and

• To utilize a diversified investment approach that will reduce the variability of investment returns.

Based on the most recent asset liability study conducted by the investment advisor, utilizing the Prepaid College Trust’s most current actuarial information and incorporating the return objectives, risk tolerance, and liquidity needs, the Board approved the following target asset allocation policy as the long-term, strategic asset allocation for the Prepaid College Trust:

Board approved targets will be reached as soon as practical through a prudent transition plan.

The Board recognizes that a rigid asset allocation would be both impractical and, to some extent, undesirable under variable market conditions. Therefore, the allocation of assets may vary from time to time within the following ranges:

Maryland law provides for the Procurement Exemption for investments in the Prepaid College Trust. The Procurement Exemption facilitates Maryland 529’s investment of the Trust’s assets with investment managers. This, in turn, allows the Prepaid College Trust to benefit from reduced investment management

fees available for these accounts, which is designed to increase the net investment return to the Prepaid College Trust.

The Board has adopted guidelines for separate account managers and enters into investment management agreements with each investment manager.

The Board has chosen to invest in the following separately managed accounts, limited partnerships, commingled funds, and

Core Fixed Income 20% High Yield Fixed Income 5%Senior Secured Loans 5% Emerging Markets Debt 5%TOTAL FIXED INCOME 35%

U.S. Large Cap 9%U.S. Mid Cap 4% U.S. Small Cap 4% Low Volatility Equity 5%TOTAL US EQUITY 22%

Developed Market Large Cap 13% Emerging Markets 5% Non-U.S. Small Cap 5%TOTAL NON-US EQUITY 23%

U.S. Core Real Estate* 15%TOTAL REAL ASSETS 15%

Private Equity* 5%TOTAL PRIVATE EQUITY 5%

TOTAL PORTFOLIO 100%

TARGET ASSET ALLOCATION

Core Fixed Income 15–25% High Yield Fixed Income 2–8%Senior Secured Loans 2–8% Emerging Markets Debt 2–8%TOTAL FIXED INCOME 30–40%

U.S. Large Cap 4–14%U.S. Mid Cap 1–7% U.S. Small Cap 1–7% Low Volatility Equity 2–8%TOTAL US EQUITY 17–27%

Developed Market Large Cap 8–18% Emerging Markets 2–8% Non-U.S. Small Cap 2–8%TOTAL NON-US EQUITY 18–28%

U.S. Core Real Estate 10–20%TOTAL REAL ASSETS 10–20%

Private Equity 2–8%TOTAL PRIVATE EQUITY 2–8%

TOTAL PORTFOLIO RANGES 100%

TARGET ASSET ALLOCATION RANGES

*Investments in private equity and real estate are generally less liquid than investments in public market securities. The Board typically invests in these securities through an investment in a limited partnership.Investments are made periodically as required by the limited partnership. Therefore, actual allocations to these two asset classes may deviate from their targets for extended periods.

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mutual funds. The Board may, at any time, in its sole discretion and consistent with the Investment Plan, increase, decrease, or terminate any investment discussed below. Additional or different investments may be made as the Board completes its transition to the target asset allocations discussed above.

Fixed Income:• Vanguard Total Bond Market Index Fund. This index fund

represents a wide spectrum of public, investment grade, taxable, fixed income securities in the United States — including government, corporate, and international dollar-denominated bonds, as well as mortgage backed and asset backed securities — all with maturities of more than one year.

• Income Research & Management for exposure to the U.S. core fixed income market. The assets of this separately managed account primarily consist of a diversified set of investment-grade bonds across various sectors including corporate bonds, securitized holdings, and government securities.

• MacKay Shields High Yield Active Core Fund for high yield fixed income. This commingled fund analyzes the current position in an economic cycle and then seeks to adjust the portfolio accordingly to capture the most risk-adjusted yield and return. This analysis is complemented with a bottom up credit analysis focusing on achieving higher yields and avoiding bonds with uncompensated risk.

• PENN Core High Yield Bond Fund II for high yield fixed income. This commingled fund uses a defensive strategy to preserve investor principal while generating high levels of current income from U.S. based, U.S. dollar denominated, below investment grade, cash paying, and corporate debt. The portfolio maintains a bias toward the upper and middle tiers (BB-B rated) of the high yield debt market and generally will not own companies rated CCC or below by both Moody’s and Standard & Poor’s.

• Franklin Templeton Emerging Markets Debt Opportunities Fund for emerging markets fixed income. The fund's investment goal is to seek current income with capital appreciation as a secondary goal. Under normal market conditions, the fund invests at least 80% of its net assets in a non-diversified portfolio of bonds issued by government or government related entities that are located in emerging market countries, as well as bonds issued by emerging market corporate entities.

• BayCity Senior Loan Fund. This is a commingled fund that invests primarily in Senior Loans, total returns and credit default swaps and other derivatives on Senior Loans. The objective is to seek a high level of current income and total return, consistent with preservation of capital.

U.S. Equity:• Kayne Anderson Rudnick for U.S. small capitalization equity.

This separate account is actively managed and invests in companies with business models that provide competitive protections and control over their markets.

• Vanguard Institutional Index Fund for U.S. large capitalization core common stocks. This is an open-end mutual fund that is passively managed and maintains a portfolio of essentially all of the 500 stocks that make up the Standard & Poor’s 500 Index.

• Vanguard Mid-Cap Index Fund Institutional Shares investment is a passively managed fund that seeks to track an index of medium-sized U.S. equity companies.

• Dodge & Cox Stock Fund for large capitalization common stocks. This is an actively managed mutual fund that invests in companies primarily in the U.S. that appear to be temporarily undervalued by the stock market but have a favorable outlook for long-term growth.

• Martingale Investment Trust. This actively managed investment seeks to deliver risk-adjusted returns exceeding the cap-weighted index over the long-term through investments in low risk stocks in various sectors.

Non-U.S. Equity:• Vanguard Developed Markets Index Fund — Institutional

Shares for non-U.S. equity in developed markets.

This is a passively managed mutual fund that seeks to track the performance of the FTSE Developed ex North America Index.

• Mondrian International Equity Fund. The investment seeks long-term total return. The fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in equity securities. It invests in at least three countries, and invests at least 40% of its total assets in securities of non-U.S. companies. Equity securities include, but are not limited to, common stocks, preferred stocks, convertible securities, rights and warrants, and depositary receipts (including ADRs, EDRs and GDRs, which are certificates typically issued by a bank or trust company that represent ownership interests in securities of non-U.S. or U.S. companies.

• Baillie Gifford EAFE Pure Fund for non-U.S. equity. This is a commingled fund that invests in non-U.S. companies across the market cap spectrum whose principal activities are in developed-market countries. The fund has a growth orientation and invests in companies that it expects to achieve superior profit growth and long-term out-performance.

• Aberdeen Asset Management for global emerging markets equity. This actively managed fund aims to provide long-term capital growth from direct or indirect investments in emerging stock markets worldwide or companies with significant activities in emerging markets.

• T. Rowe Price International Discovery Fund. This mutual fund seeks long-term growth of capital primarily through investment in common stocks of rapidly growing small-to medium sized companies outside the U.S.

Real Assets:• AEW Core Property Trust (U.S.) for core private real estate.

This commingled fund focuses on stable, income producing properties and includes multifamily, retail, office, industrial, and hotel properties. The fund primarily acquires institutional-quality assets in markets throughout the U.S. that are designed to provide durable income streams and appreciation over the mid- to long-term.

• UBS Trumbull. This actively managed core portfolio of U.S. equity real estate seeks to provide attractive returns with a stable income focus while limiting downside risk.

Private Equity:• Adams Street Global Secondary Fund 5 for globally

diversified private equity. As a “fund of funds” provider, this offering is broadly diversified across venture capital, buyout, and mezzanine/distressed private investments obtained through secondary market transactions.

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• J.P. Morgan Global Private Equity is a globally diversified private equity investment. As a second “fund of funds” investment for the portfolio, it will invest across multiple partnerships, investment sectors, investment types and various geographies.

Occasionally, the Board may have investments with legacy investment managers during a transition period.

PERFORMANCE INFORMATION Performance information for investments in the Prepaid College Trust is published each year in Maryland 529’s Annual Report. The most recent report is available on our website. An Annual Report Summary and Highlights is also mailed annually to each Account Holder.

*Date of inception is December 31, 1998.

Returns are net of all investment fees.

Please keep in mind that past performance is not indicative of future results.

CONTRACT PRICING The factors and projections we use to determine Contract prices for this enrollment period include:

• 2019–2020 tuition at Maryland Public Colleges;

• Projected 2020–2021 and 2021–2022 tuition increases of 6% in each Academic Year;

• Projected annual tuition increases of 6% in each following Academic Year;

• Projected annual mandatory fee increases of 8% in each Academic Year;

• Projected annual earnings of 6.3% on Prepaid College Trust investments;

• Age of the Beneficiary;

• Tuition plan selected;

• Payment option selected;

• 2.5% of Contract payments to pay for the operating expenses of the Trust;

• $4 payment processing fee for each scheduled payment;

• Projected number of new Contracts in each Enrollment Period;

• A load of 2.5% for the University tuition plans and 1.8% for the Community College tuition plans to support the actuarial soundness of the Trust.

Following an analysis, calculation, and evaluation of these and other factors, the Board then determines Contract prices for each tuition plan and payment option.

KEY FEDERAL TAX ISSUES

General. This section takes a closer look at some of the federal tax considerations you should be aware of when investing in the Prepaid College Trust. The federal tax consequences associated with an investment in the Prepaid College Trust can be complex. Please keep in mind that the IRS has issued only proposed regulations under Section 529 of the Code; final regulations could affect the tax considerations mentioned in this section or require the terms of the Prepaid College Trust to change. In addition, the Board has not requested a private letter ruling from the IRS with regard to the status of the Prepaid College Trust under Section 529 of the Code. The Board may, in its sole discretion, apply for such a ruling from the IRS.

This discussion is by no means exhaustive and is not meant as tax advice. This information was written solely to support the promotion and marketing of the Prepaid College Trust.

You should consult a tax advisor regarding the application of federal tax laws to your particular circumstances.

Federal Tax-Deferred Earnings. Any earnings on your payments are tax-deferred, which means your Account assets grow free of current federal income tax.

Federal Gift/Estate Tax. For the tax year 2019, if the amounts contributed by you on behalf of the Beneficiary together with any other gifts to that person (over and above those made to your Account) during the year do not exceed $15,000 ($30,000 for married couples making a proper election), no gift tax will be imposed for the year. Gifts of up to $75,000 can be made in an individual year ($150,000 for married couples making a proper election) for a Beneficiary and averaged out over five years for the gift tax exclusion.

This allows you to move assets into tax-deferred investments and out of your estate more quickly. Generally, Benefits are not included in your estate, unless you elect the five-year averaging and die before the end of the fifth year. Typically, if you die with Benefits still remaining in your Account, the Account’s value will not be included in your estate for federal estate tax purposes. If your Beneficiary dies, the value of the Account may be included in the Beneficiary’s estate for federal tax purposes. Further rules regarding gifts and the generation-skipping transfer tax may apply in the case of Benefit payments, refunds, reduced refunds; changes of Beneficiaries, and other situations. You should consult with a tax advisor when considering a change of Beneficiary or transfers to another Account or the specific effect of the gift tax and generation-skipping transfer tax on your situation.

The federal limits discussed above are for the 2019 tax year. In future years, the IRS may change the annual amount that can be excluded from federal gift taxes, so you should consult with your tax advisor for details.

Tax Benefits Not Intended for Abuse. Qualified Tuition Programs are intended to be used only to save for Qualified Higher Education Expenses. These Programs are not intended to be used, nor should they be used, by any taxpayer for the purpose of evading federal or state taxes or tax penalties. Taxpayers may wish to seek tax advice from an independent tax advisor based on their own particular circumstances.

ONE YEAR 5.7%THREE YEAR 8.4%FIVE YEAR 5.3%TEN YEAR 9.0%SINCE INCEPTION* 5.5%

Rate of return on Prepaid College Trust InvestmentsAs of June 30 , 2019

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Rollovers. You may transfer all or part of the money in your Account to another Account in the Prepaid College Trust or an account in another Qualified Tuition Program (including the Maryland College Investment Plan) or to an eligible ABLE account without adverse federal income tax consequences if the transfer occurs within 60 days of the withdrawal from your Account. A rollover to another Qualified Tuition Program for the same Beneficiary is limited to one per 12 months. If the assets in your Account are being rolled over to an ABLE account or Qualified Tuition Program Account for a different Beneficiary, the Beneficiary of the receiving account must be a Member of the Family of the original Beneficiary. Changes in your Beneficiary could potentially cause gift and/or generation-skipping transfer tax consequences to the Beneficiary and/or Account Holder. Any rollover from a Qualified Tuition Program to an ABLE account is subject to the ABLE account’s annual contribution limit (currently $15,000) as prescribed by Section 529A of the Code and/or by the state sponsor of the ABLE account. Under federal law, a rollover from a Qualified Tuition Program to an ABLE account must take place by December 31, 2025. Please consult with your tax advisor.

Similarly, you may fund your Account with a rollover from another Qualified Tuition Program. There are no adverse federal income tax consequences if the transfer occurs within 60 days of the withdrawal from the other Qualified Tuition Program.

Rollovers for the same Beneficiary are limited to one per 12 months. If the Beneficiary of the other Qualified Tuition Program is different, the Beneficiary of the resigning account must be a Member of the Family of the Beneficiary of your Prepaid College Trust Account.

Coverdell Education Savings Accounts. You may fund your Account with a distribution from a Coverdell Education Savings Account. This type of distribution is generally tax-free if your Account has the same Beneficiary as the Coverdell Education Savings Account.

Currently, the maximum annual contribution to Coverdell Education Savings Accounts is $2,000 per student. Consult your tax advisor for more information.

Education Tax Credits. You and your Beneficiary, if eligible, can take advantage of Hope and Lifetime Learning Tax Credits without affecting your participation in the Prepaid College Trust or your Benefit. You can claim Hope and Lifetime Learning Credits in the same year that you take a tax-exempt distribution from a Qualified Tuition Program provided the distribution is not used for the same educational expenses. Federally instituted guidelines (including income range and the student’s year in college) govern who can take advantage of these credits. More information may be found in the IRS Publication 970, which can be viewed online at irs.gov.

Federal Taxation of Distributions from Your Account:Federal Taxation of Benefit Payments. Distributions from your Account may have two components: (1) principal, which is not taxable when distributed, and (2) earnings, if any, which may be subject to federal taxes. We determine the earnings portion at calendar year-end based on IRS rules and report it to the IRS and the taxable party on Form 1099-Q (or other successor

form). In certain cases, losses may be reported to the IRS. You are responsible for preparing and filing the appropriate forms when completing your federal income tax return and for paying any applicable tax directly to the IRS. The taxable party is the Beneficiary unless the distribution is issued to the Account Holder.

Qualified Distributions. Distributions from your Account are either Qualified or Non-Qualified as determined by the IRS. As the Account Holder, you are responsible for satisfying the IRS requirements for proof of Qualified Distributions, which include retaining any paperwork and receipts necessary to substantiate the type of distribution you received. Your Account statements are not tax documents and should not be submitted with your tax forms. However, you could use the Account statement(s) to determine how much you paid or contributed during the previous tax year. We will not provide information to the IRS regarding the type of distribution you receive.

When a Benefit is paid for Qualified Higher Education Expenses, your Account’s investment gains are distributed federal income tax-free, provided you do not also claim all or part of these Qualified Higher Education Expenses as a Lifetime Learning Credit or American Opportunity Tax Credit, which expanded and renamed the already-existing Hope Scholarship Credit. If the Benefit paid exceeds the Beneficiary’s adjusted Qualified Higher Education Expenses (total Qualified Higher Education Expenses reduced by any tax-free educational assistance), some or all of your Account’s investment gains may be recognized as income by the IRS and may be subject to federal income taxes as well as the federal surcharge required by the Code that is equal to 10% of the earnings portion of a Non-Qualified Distribution (Distribution Tax). Please see IRS Publication 970 for additional information.

Refunds. For federal income tax purposes and pursuant to current IRS guidance, including Form 1099-Q and proposed regulations, the earnings portion of a refund received in the event of the death or Disability of a Beneficiary or the receipt of a Scholarship, grant, or tuition remission is generally taxable to the Account Holder. However, the refund would be taxable to the Beneficiary if it is paid to the Beneficiary or Eligible Institution. The earnings portion of a refund under these circumstances (which are considered Qualified Distributions for federal income tax purposes and pursuant to current IRS guidance, including Form 1099-Q and proposed regulations) will not be subject to the Distribution Tax.

Reduced Refunds. Generally, you will be taxed on the earnings portion of any reduced refund you receive. However, the reduced refund would be taxable to the Beneficiary if it is paid to the Beneficiary. Any reduced refund will also be subject to the Distribution Tax.

Determination of Taxable Earnings. The principal and earnings portions of a refund or reduced refund for federal tax purposes are determined by a formula reflecting the proportion of contributions to the overall market value of your Account(s) in the Prepaid College Trust for the same Beneficiary. If the distribution is subject to a Distribution Tax, the Distribution Tax is applied to the earnings portion. The taxpayer is responsible for calculating and reporting any Distribution Tax to the IRS.

20 MARYLAND 529.COM

KEY STATE TAX ISSUES General. This section takes a closer look at some of the state tax considerations you should be aware of when investing in the Prepaid College Trust. However, the discussion is by no means exhaustive and is not meant as tax advice. The state tax consequences of an investment in the Prepaid College Trust can be complex. You should consult your tax advisor regarding the application of state tax laws to your particular circumstances.

For additional information on Prepaid College Trust tax benefits for Maryland taxpayers, please refer to Maryland Income Tax Administrative Release No. 32, which can be obtained at MarylandTaxes.com by clicking the “Tax Publications” link at the bottom of the page or by calling 1-800-MD-TAXES.

Maryland State Income Deduction for Contributions. A Maryland taxpayer who is also an Account Holder or contributes to a Prepaid Trust account, may receive a maximum annual deduction of $2,500 per Account on their Maryland tax return. The Account Holder may take any amount disallowed in one year as a deduction in succeeding taxable years until the full amount contributed to the Account has been deducted, subject to the $2,500 annual limit. If you no longer pay Maryland income tax, you are no longer eligible to claim this deduction. Additionally, if you receive funds through the State Contribution Program, you are not eligible for the Maryland state income tax.

To take advantage of the income deduction for 2019, your contribution needs to be completed online (processed by your bank) or postmarked by December 31, 2019. You are responsible for maintaining documentation to support the timing of your contribution.

While contributors other than the Account Holder may be eligible for the income deduction, only the Account Holder can control the use and distributions of the benefits in an account. See the definition of "Account Holder" in Article II for more information.

Maryland Tax-Free Distributions for Qualified Expenses. When Benefits are distributed to pay for Qualified Higher Education Expenses, all of your Account's investment gains, if any, are distributed free of State income taxes. If you no longer pay Maryland income tax, you will no longer receive this Maryland tax benefit.

Maryland Taxation of Other Distributions/Recapture of Previous Deductions. Any amounts previously taken as a deduction from Maryland adjusted gross income must be added to your Maryland adjusted gross income for the tax year in which you take a distribution from your Account, unless the distribution is a Rollover Distribution or used to pay for Qualified Higher Education Expenses. The requirement to add previous years’ deductions to your Maryland adjusted gross income applies even if that distribution was the result of the Beneficiary’s receipt of a Scholarship, grant, or tuition remission or the Beneficiary’s death or Disability.

Non-Maryland Residents. If you are not a Maryland resident, the amount of your Benefit that represents investment gain, even if used for Qualified Higher Education Expenses may be subject to applicable state taxes. Depending upon the laws of your or your Beneficiary’s home state, favorable state tax treatment, or other benefits offered by that home state may be available only if you invest in the home state’s Qualified Tuition Program. Any state-based benefit offered with respect to a particular 529 plan should be one of many appropriately weighted factors to be considered in making an investment decision. You should consult with your financial, tax or other advisor to learn more about how state-based benefits, including any limitations, would apply to your specific circumstances. You also may wish to contact your home state or any other Qualified Tuition Program to learn more about the features, benefits and limitations of that state’s Qualified Tuition Program. Earnings on rollovers may be subject to state tax. Please consult your tax advisor for the specific state tax consequences in your home state.

Maryland Gift and Estate Taxes. Maryland law does not impose gift taxes. Therefore, in the event that an Account Holder elects five-year averaging of contributions of up to $75,000 in 2019 ($150,000 for married couples making the proper election), and dies prior to the end of the fifth year, a portion of the assets of the Account, while subject to federal gift tax, would not be subject to a Maryland gift tax.

Maryland law imposes an estate tax that parallels the federal estate tax in some respects. Generally, assets remaining in your Account following your death will only affect your Maryland estate tax if included in the federal gross estate. You should consult a tax advisor to evaluate the specific effect of Maryland estate taxes on your situation.

PRIVACY POLICYProtecting the privacy of your personal information is important to us. The following paragraphs explain the procedures we have in place to protect this information.

Confidential Information. Maryland law requires that the name and other information identifying a person as an Account Holder or Beneficiary in the Prepaid College Trust be confidential. We recognize our obligation to keep information about you secure and confidential.

Collecting and Using Information. Through your participation in the Prepaid College Trust, we collect various types of confidential information you provide in your Enrollment Form such as your name and the name of your Beneficiary, Social Security numbers, addresses, and demographic information. We also collect confidential information relating to your Prepaid College Trust transactions such as Benefits, payments, and refunds. We do not sell information about current or former Account Holders, Custodians, and/or Beneficiaries to any third parties, and we do not disclose it to third parties unless necessary to process a transaction, service an Account, as otherwise permitted or required by law, or with your consent. We may, however, share this information with companies that perform administrative or marketing services for us or with a research firm we have hired. When we enter into these relationships, our contracts restrict the companies’ use of your information,

The Maryland income deduction is available to Account Holders and Contributors and only on the amounts they contribute.

21888. 4MD. GRAD

prohibiting them from sharing or using it for any purposes other than those for which they were hired.

Electronic Communications. We may, from time to time, notify you by email about important information about the Prepaid College Trust or that documents, including Account statements and transaction confirmations, have been delivered. However, email notification is not a substitute for regularly checking your Account at Maryland529.com. We may archive these documents and cease providing them on our website when they become out of date and, therefore, you should consider printing any Account information that you may wish to retain before it is removed. After these documents are archived, you will be able to obtain a copy by contacting us.

Protection of Information. We maintain physical, electronic, and procedural safeguards to protect the information about you that we collect or use. These include restricting access to those individuals who have a need to know the information such as those who service your Account, resolve problems, or inform you of additional products or services where appropriate.

CREDITOR PROTECTIONSUnder Maryland law, your Account is not subject to attachment, garnishment, or seizure by creditors of you or the Beneficiary

other than the State. Federal law also provides limited creditor protections based on the timing of the contributions and the debtor’s relationship to the Beneficiary. Generally, contributions made to a debtor’s Account less than one year before the filing of a bankruptcy petition are included in the debtor Account

Holder’s bankruptcy estate and are not protected from creditors. Contributions made to a debtor’s Account more than one year before the filing of a bankruptcy petition are generally not part of a debtor Account Holder’s bankruptcy estate, provided that the contributions are not deemed excess contributions and the Beneficiary is the debtor’s child, stepchild, grandchild or step-grandchild. However, for contributions made between one and two years prior to the filing of bankruptcy petition, a current maximum of $6,225 in contributions may be excluded from the debtor Account Holder’s bankruptcy estate.

You should consult a legal advisor regarding the application of this specific law to your particular circumstances and for a determination of whether Maryland or federal law applies to your situation.

PRICES AND FEESAll prices are based on several factors; for a full list of these factors, see Contract Pricing of this Disclosure Statement. If you wish to take advantage of the Maryland State income deduction for the 2019 tax year, your completed 2019–2020 Enrollment Form and applicable payment must be completed electronically (processed by your bank) or postmarked by December 31, 2019. Keep in mind all Benefits are paid on a semester by semester basis (or the financial equivalent for the particular Eligible Institution).

The following tables provide 2019–2020 Enrollment Period Contract prices. To determine a price, decide which tuition plan you want, then find the Beneficiary’s grade or age and projected enrollment year (or earliest year he/she is eligible to use Benefits) on the left-hand side of the chart. For example, if the Beneficiary will be in the 9th grade during the 2019–2020 school year, the projected year of college enrollment will be 2023. For Beneficiaries in the 10th –12th grades, the earliest year they are entitled to use Benefits will be 2023. For further information, see Minimum Maturity in Article V of the Contract.

Next, the columns moving across the chart will provide you with the prices and number of payments for different payment options: lump sum, annual, five-year monthly, and extended monthly. If you would like to use the down payment option, please see the last pricing page as an example. The down payment options for all tuition plans and additional contract price options are posted on our website or available by calling our toll-free number. The monthly and annual payment prices include an assumed 6.3% Trust Returns. If you enroll during the 2019–2020 Enrollment Period, your first payment will be due August 1, 2020. If you choose the down payment option, your first payment and the down payment are both due August 1, 2020.

22 MARYLAND 529.COM

COMMUNITY COLLEGE PLAN — 1 YEAR

Grade/Age 9/1/19

Projected Enrollment/

Initial Eligibility

Lump Sum Payment

ANNUAL PAYMENTS 5-Year Monthly

Payments

EXTENDED MONTHLY PAYMENTS

Amount Number Amount Number

9-12 2023 $5,600 $1,984 3 N/A $211 29

8 2024 5,555 1,968 3 N/A 154 41

7 2025 5,513 1,954 3 $110 122 53

6 2026 5,470 1,938 3 109 103 65

5 2027 5,427 1,923 3 109 89 77

4 2028 5,389 1,910 3 108 79 89

3 2029 5,351 1,896 3 107 72 101

2 2030 5,316 1,884 3 106 66 113

1 2031 5,279 1,871 3 106 61 125

K 2032 5,246 1,859 3 105 57 137

4 2033 5,215 1,848 3 105 54 149

3 2034 5,183 1,837 3 104 51 161

2 2035 5,154 1,827 3 103 49 173

1 2036 5,124 1,816 3 103 47 185

Infant 2037 5,099 1,807 3 102 45 197

COMMUNITY COLLEGE PLAN — 2 YEARS

Grade/Age 9/1/19

Projected Enrollment/

Initial Eligibility

Lump Sum Payment

ANNUAL PAYMENTS 5-Year Monthly

Payments

EXTENDED MONTHLY PAYMENTS

Amount Number Amount Number

9-12 2023 $11,155 $3,950 3 N/A $417 29

8 2024 11,066 3,919 3 N/A 302 41

7 2025 10,983 3,889 3 $216 240 53

6 2026 10,899 3,860 3 214 200 65

5 2027 10,819 3,831 3 213 173 77

4 2028 10,741 3,804 3 211 154 89

3 2029 10,667 3,778 3 210 139 101

2 2030 10,594 3,752 3 208 127 113

1 2031 10,526 3,728 3 207 117 125

K 2032 10,460 3,704 3 206 110 137

4 2033 10,396 3,682 3 204 103 149

3 2034 10,334 3,660 3 203 98 161

2 2035 10,278 3,640 3 202 93 173

1 2036 10,224 3,621 3 201 89 185

Infant 2037 10,172 3,602 3 200 86 197

23888. 4MD. GRAD

UNIVERSITY PLAN — 1 SEMESTER

Grade/Age 9/1/19

Projected Enrollment/

Initial Eligibility

Lump Sum Payment

ANNUAL PAYMENTS 5-Year Monthly

Payments

EXTENDED MONTHLY PAYMENTS

Amount Number Amount Number

9-12 2023 $6,296 $2,231 3 N/A $237 29

8 2024 6,261 2,218 3 N/A 173 41

7 2025 6,229 2,207 3 $124 138 53

6 2026 6,198 2,196 3 123 116 65

5 2027 6,169 2,186 3 123 101 77

4 2028 6,143 2,177 3 122 90 89

3 2029 6,116 2,167 3 122 81 101

2 2030 6,094 2,159 3 121 75 113

1 2031 6,073 2,152 3 121 69 125

K 2032 6,052 2,144 3 121 65 137

4 2033 6,033 2,138 3 120 62 149

3 2034 6,016 2,132 3 120 59 161

2 2035 6,003 2,127 3 120 56 173

1 2036 5,990 2,122 3 119 54 185

Infant 2037 5,979 2,119 3 119 52 197

UNIVERSITY PLAN — 1 YEAR

Grade/Age 9/1/19

Projected Enrollment/

Initial Eligibility

Lump Sum Payment

ANNUAL PAYMENTS 5-Year Monthly

Payments

EXTENDED MONTHLY PAYMENTS

Amount Number Amount Number

9-12 2023 $12,404 $4,392 3 N/A $463 29

8 2024 12,338 4,369 3 N/A 336 41

7 2025 12,274 4,346 3 $241 267 53

6 2026 12,210 4,324 3 239 224 65

5 2027 12,155 4,304 3 238 194 77

4 2028 12,104 4,286 3 237 173 89

3 2029 12,052 4,268 3 236 156 101

2 2030 12,008 4,252 3 236 143 113

1 2031 11,963 4,236 3 235 133 125

K 2032 11,925 4,223 3 234 125 137

4 2033 11,889 4,210 3 233 118 149

3 2034 11,855 4,198 3 233 112 161

2 2035 11,830 4,189 3 232 107 173

1 2036 11,802 4,179 3 232 102 185

Infant 2037 11,780 4,171 3 231 98 197

24 MARYLAND 529.COM

UNIVERSITY PLAN — 2 YEARS

Grade/Age 9/1/19

Projected Enrollment/

Initial Eligibility

Lump Sum Payment

ANNUAL PAYMENTS 5-Year Monthly

Payments

EXTENDED MONTHLY PAYMENTS

Amount Number Amount Number

9-12 2023 $24,742 $8,759 3 N/A $919 29

8 2024 24,609 6,730 4 N/A 667 41

7 2025 24,485 5,516 5 $476 530 53

6 2026 24,369 4,709 6 474 443 65

5 2027 24,258 4,135 7 472 384 77

4 2028 24,155 3,706 8 470 341 89

3 2029 24,058 3,374 9 468 308 101

2 2030 23,971 3,362 9 466 282 113

1 2031 23,888 3,351 9 465 262 125

K 2032 23,812 3,340 9 463 245 137

4 2033 23,744 3,330 9 462 231 149

3 2034 23,685 3,322 9 461 219 161

2 2035 23,629 3,314 9 460 209 173

1 2036 23,583 3,308 9 459 200 185

Infant 2037 23,543 3,302 9 458 193 197

UNIVERSITY PLAN — 3 YEARS

Grade/Age 9/1/19

Projected Enrollment/

Initial Eligibility

Lump Sum Payment

ANNUAL PAYMENTS 5-Year Monthly

Payments

EXTENDED MONTHLY PAYMENTS

Amount Number Amount Number

9-12 2023 $37,013 $13,101 3 N/A $1,373 29

8 2024 36,823 10,069 4 N/A 996 41

7 2025 36,642 8,253 5 $711 791 53

6 2026 36,473 7,047 6 708 661 65

5 2027 36,313 6,188 7 704 573 77

4 2028 36,163 5,547 8 702 508 89

3 2029 36,025 5,051 9 699 459 101

2 2030 35,893 4,657 10 696 421 113

1 2031 35,777 4,337 11 694 390 125

K 2032 35,669 4,072 12 692 365 137

4 2033 35,573 3,850 13 690 344 149

3 2034 35,486 3,662 14 689 326 161

2 2035 35,410 3,501 15 687 311 173

1 2036 35,345 3,362 16 686 298 185

Infant 2037 35,293 3,241 17 685 287 197

25888. 4MD. GRAD

UNIVERSITY PLAN — 4 YEARS

Grade/Age 9/1/19

Projected Enrollment/

Initial Eligibility

Lump Sum Payment

ANNUAL PAYMENTS 5-Year Monthly

Payments

EXTENDED MONTHLY PAYMENTS

Amount Number Amount Number

9-12 2023 $49,226 $17,423 3 N/A $1,825 29

8 2024 48,978 13,391 4 N/A 1,324 41

7 2025 48,746 10,978 5 $944 1,051 53

6 2026 48,523 9,374 6 940 879 65

5 2027 48,319 8,233 7 936 761 77

4 2028 48,128 7,381 8 932 675 89

3 2029 47,946 6,722 9 929 610 101

2 2030 47,782 6,198 10 926 559 113

1 2031 47,631 5,772 11 923 518 125

K 2032 47,496 5,421 12 920 484 137

4 2033 47,374 5,126 13 918 456 149

3 2034 47,267 4,877 14 916 433 161

2 2035 47,174 4,663 15 914 413 173

1 2036 47,094 4,478 16 912 396 185

Infant 2037 47,030 4,318 17 911 381 197

TWO-PLUS-TWO PLAN — 4 YEARS

Grade/Age 9/1/19

Projected Enrollment/

Initial Eligibility

Lump Sum Payment

ANNUAL PAYMENTS 5-Year Monthly

Payments

EXTENDED MONTHLY PAYMENTS

Amount Number Amount Number

9-12 2023 $35,639 $12,615 3 N/A $1,322 29

8 2024 35,435 9,689 4 N/A 959 41

7 2025 35,244 7,938 5 $684 761 53

6 2026 35,053 6,773 6 680 636 65

5 2027 34,880 5,944 7 677 550 77

4 2028 34,714 5,325 8 674 488 89

3 2029 34,555 4,845 9 671 440 101

2 2030 34,405 4,464 10 668 403 113

1 2031 34,269 4,154 11 665 374 125

K 2032 34,144 3,898 12 663 349 137

4 2033 34,026 3,683 13 660 329 149

3 2034 33,916 3,500 14 658 312 161

2 2035 33,823 3,344 15 656 297 173

1 2036 33,735 3,209 16 655 285 185

Infant 2037 33,659 3,091 17 653 274 197

26 MARYLAND 529.COM

(1) If payment is received more than 15 days past the due date.

(2) These fees are waived in case of death or Disability.

(3) These fees do not cover possible increases in Contract payments.

(4) This fee is waived in cases of Unused Benefits.

(5) This fee applies to lump sum payments that are 31–90 days late. If no payment is received within 90 days, your Account will be canceled.

The operating expenses of the Trust are funded by: (1) 2.5% of all Contract payments; and (2) a $4 payment processing fee, which has been included in each scheduled payment listed in the Price Charts.

All Fees are subject to change upon Board approval. Maryland law requires that all fees collected by the Prepaid College Trust be used to administer the Prepaid College Trust.

Schedule of Fees The following table provides information regarding the fees relating to the Prepaid College Trust. The Board may change the fees from time to time. Any changes in fees will be described in a supplement to this Disclosure Statement or in subsequent Disclosure Statements.

SCHEDULE OF FEES

Enrollment Fee — Must be received before Account can be opened

New Account opened online $50

New Account opened using paper enrollment form $75

New Account — opened online or by using the paper form — if the same Account Holder and Beneficiary have an account in the Maryland College Investment Plan

$20

Purchase of Additional Semesters or Years — Same Account Holder and Beneficiary $20

Recontribution Fee $10

Rollover Fee — For rollover to another 529 plan (except the Maryland College Investment Plan) $75

Rollover Fee — For rollover to the Maryland College Investment Plan $20

Returned Check Fee $28

Late Fee on Monthly Payment (1) $10 per month

Late Fee on Lump Sum Payment beyond 30 days (5) $150

Late Fee on Annual Payment (1) $40 per month

Change of Account Holder (2) $10

Change of Beneficiary (2, 3) — must be for full remaining balance $100

Change of Tuition Plan (3) $10

Change in Payment Option (3) $25

Account Cancellation Fee — if account is canceled due to a reduced refund (4) $75

Document Replacement Fee Reasonable Cost

27888. 4MD. GRAD

Notes

MARYLAND529.COM • 888.4MD.GRAD (463.4723)

MARYLAND 529 SPEAKERS AVAILABLE

If you would like to host a free Maryland 529 information session at your child’s school, sponsor an employee forum at your workplace, or have a speaker at a meeting of a social or community organization, please let us know. Our ambassadors travel the state providing various groups and organizations with complete information on how the Maryland 529 College Savings Plans can help parents, grandparents, and others save for a child’s future college education.

To schedule an ambassador for your group, simply complete our speaker request form and return it to us or email us at MPCT@Maryland529.org. We will then confirm your date, time, and speaker.

12/17

MARYLAND SENATOR EDWARD J. KASEMEYER PREPAID COLLEGE TRUST

MARYLAND SENATOR EDWARD J. KASEMEYER COLLEGE INVESTMENT PLAN

Maryland529.com | 888.4MD.GRAD (463.4723)

1

October 2020

IMPORTANT UPDATE TO THE MARYLAND SENATOR EDWARD J. KASEMEYER COLLEGE INVESTMENT PLANThis supplement amends the Maryland Senator Edward J. Kasemeyer College Investment Plan Disclosure Statement, dated December 2019 as supplemented April 2020 and August 2020. You should review this information carefully and keep it with your current copy of the Plan Disclosure Statement.

Changes to reduce total annual asset-based Fees

In November 2020, the underlying investments will exchange from Investor Class to I Class for Funds that currently offer an I Class; the expense ratios for the I Class are generally lower than the Investor Class, and this change will result in lower Total Annual Asset-Based Fees for the College Investment Plan Portfolios overall. Once the exchanges to I Class are completed in November 2020, only Portfolio investments in Extended Equity Market Index Fund, Total Equity Market Index Fund, International Equity Index Fund, and Spectrum Income Fund will continue to be held in the Investor Class.

Beginning in January 2021, assets in Extended Equity Market Index Fund and Total Equity Market Index Fund will be exchanged to different Funds (described below), and those holdings will be I Class Funds. Assets held by the College Investment Plan Portfolios in Spectrum Income Fund and International Equity Index Fund are expected to be exchanged from Investor Class to I Class if the I Class becomes available for these Funds in the future.

Fee changes

Effective November 18, 2020, a Program Fee of 0.05% will be implemented for all of the College Investment Plan Portfolios, which will be reflected in each Portfolio’s NAV.

Special Notes:

• Portfolio 2039, Portfolio 2036, and Equity Portfolio: A contractual Fee limitation of 0.69% will be introduced for Portfolio 2039, Portfolio 2036, and Equity Portfolio.

• Portfolio 2033: A contractual Fee limitation of 0.68% will be introduced for Portfolio 2033.

• Extended Equity Market Index Portfolio and Global Equity Market Index Portfolio: The Program Fee will be voluntarily waived on Extended Equity Market Index Portfolio and Global Equity Market Index Portfolio until completion of the underlying Fund changes for these Portfolios described above. Such Fund changes will begin for these Portfolios in January 2021.

• Bond and Income Portfolio: The Program Fee will be voluntarily waived on Bond and Income Portfolio until such time as the Portfolio’s underlying Fund, Spectrum Income Fund, is exchanged from Investor Class to I Class, if this Fund offers the I Class in the future.

Underlying Fund changes

There are several changes impacting the underlying Funds of the Portfolios:

• Effective October 1, 2020, T. Rowe Price U.S. Bond Enhanced Index Fund, the sole underlying Fund for U.S. Bond Enhanced Index Portfolio, has changed its name to T. Rowe Price QM U.S. Bond Index Fund.

• Beginning in January 2021, the underlying Fund for Extended Equity Market Index Portfolio, Extended Equity Market Index Fund, will be replaced with Small-Cap Index Fund—I Class and Mid-Cap Index Fund—I Class. This change will be completed in the first quarter of 2021. The Portfolio’s overall investment objective and description is not changing as a result of this replacement.

• Beginning in January 2021, one of the underlying Funds for Global Equity Market Index Portfolio, Total Equity Market Index Fund, will gradually be replaced with Small-Cap Index Fund—I Class, Mid-Cap Index Fund—I Class, and Equity Index 500 Fund—I Class. The Portfolio’s overall investment objective and description is not changing as a result of this replacement.

• Beginning in January 2021, U.S. Large-Cap Core Fund and Emerging Markets Discovery Stock Fund will be gradually added as underlying Funds in Equity Portfolio, Balanced Portfolio, and the Enrollment-Based Portfolios, including Portfolio for Education Today. In each Portfolio, up to 22.5% of the U.S. Equity Large-Cap allocation will be allocated to U.S. Large-Cap Core Fund and 50.0% of the Emerging Markets Equity allocation will be allocated to Emerging Markets Discovery Stock Fund.

• Beginning in January 2021, Limited Duration Inflation Focused Bond Fund will gradually be replaced with U.S. Limited Duration TIPS Index Fund in the Enrollment-Based Portfolios, including Portfolio for Education Today.

• Beginning in January 2021, the underlying Fund for Inflation Focused Bond Portfolio, Limited Duration Inflation Focused Bond Fund, will be replaced with U.S. Limited Duration TIPS Index Fund. This will be completed in the first quarter of 2021.

2

Changes to Plan Disclosure Statement Provisions

• All references to T. Rowe Price U.S. Bond Enhanced Index Fund are replaced with T. Rowe Price QM U.S. Bond Index Fund.

• The following replaces the definition of “Fees” within the Glossary:

The Program Fee, the State Fee, underlying mutual Fund expenses, and any other costs and charges associated with the College Investment Plan.

• In the Plan Disclosure Statement Summary, the answer to “What are the Fees associated with the College Investment Plan?” is replaced with the following:

The College Investment Plan has no commissions, loads, sales charges, annual Fees, or enrollment Fees. The Investment Options bear a pro-rata share of the expenses of the underlying Funds, a 0.05% Program Fee, as well as a 0.05% State Fee, which is used to offset expenses associated with administering the College Investment Plan. A detailed description of Fees associated with the College Investment Plan can be found in the section titled Fees and Costs.

• The following replaces “Fees and Costs” and “Approximate Cost for a $10,000 Investment” on pages 9 and 10 of the Plan Disclosure Statement:

Fees and CostsFees. This section provides information regarding the Fees and costs relating to the College Investment Plan. The Board may change the Fees and costs from time to time. Any changes to the Fees will be described by supplement to this Disclosure Statement or in subsequent Disclosure Statements.

The following table shows Fees for investing in the College Investment Plan as of November 30, 2020, and shows the expected Fees based on exchanging underlying investments from Investor Class mutual Funds to I Class mutual Funds and implementing a 0.05% Program Fee. For information regarding the Program Fee, see footnote 2 below. For information regarding the State Fee, see footnote 3 below. There are no miscellaneous Fees or annual Account Fees.

1 Each Portfolio will indirectly bear its pro-rata share of the Fees and expenses of the Funds in which it invests. These Fees are not charged directly to a Portfolio, but they are included in the NAV of the Funds held by the College Investment Plan. The pro-rata share of the Fees and expenses is calculated based on the amount that each Portfolio invests in a Fund and the expense ratio. The expense ratio is expressed as a percentage and represents the amount of operating expenses that are charged to an investor. A Fund’s expense ratio does not reflect brokerage and other transaction costs, although such costs are reflected in the Fund’s NAV and performance. The underlying Fund expenses are based on a weighted average of each Fund’s expense ratio (net of any expense limitations in place), in accordance with the Investment Option’s neutral asset allocations among the applicable Funds as of November 30, 2020, and reflects the exchange of underlying Funds from the Investor Class to I Class for all Funds but Extended Equity Market Index Fund, Total Equity Market Index Fund, International Equity Index Fund, and Spectrum Income Fund. You can visit our website, Maryland529.com, or call us to obtain the most recent weighted average Fund expenses for each Investment Option.

FEE STRUCTURE MODEL(as of November 30, 2020)

Investment Options Estimated Underlying Fund Expenses1 Program Fee2 State Fee3 Total Annual Asset-

Based Fees4

Portfolio 20395 0.48% 0.05% 0.05% 0.58%

Portfolio 20365 0.48% 0.05% 0.05% 0.58%

Portfolio 20335 0.50% 0.05% 0.05% 0.60%

Portfolio 2030 0.53% 0.05% 0.05% 0.63%

Portfolio 2027 0.55% 0.05% 0.05% 0.65%

Portfolio 2024 0.44% 0.05% 0.05% 0.54%

Portfolio 2021 0.29% 0.05% 0.05% 0.39%

Portfolio for Education Today 0.29% 0.05% 0.05% 0.39%

Equity Index 500 Portfolio 0.06% 0.05% 0.05% 0.16%

Equity Portfolio5 0.48% 0.05% 0.05% 0.58%

Extended Equity Market Index Portfolio 0.35% 0.00%6 0.05% 0.40%

Global Equity Market Index Portfolio 0.35% 0.00%6 0.05% 0.40%

Balanced Portfolio 0.47% 0.05% 0.05% 0.57%

Bond and Income Portfolio 0.63% 0.00%6 0.05% 0.68%

Inflation Focused Bond Portfolio 0.26% 0.05% 0.05% 0.36%

U.S. Bond Enhanced Index Portfolio 0.12% 0.05% 0.05% 0.22%

U.S. Treasury Money Market Portfolio7 0.30% 0.05% 0.05% 0.40%

3

2 The Program Manager, T. Rowe Price, receives the Program Fee of 0.05% based on the assets in the College Investment Plan to help offset certain record keeping and account holder servicing expenses associated with managing the College Investment Plan. Payment of the Program Fee by each Portfolio is already reflected in the Portfolio’s NAV.

3 The Trustee, Maryland 529, receives the State Fee of 0.05% based on the assets in the College Investment Plan to help offset certain administrative and marketing expenses associated with administering the College Investment Plan. Payment of the State Fee by each Portfolio is already reflected in the Portfolio’s NAV.

4 This total is assessed against assets over the course of the year. Please refer to the Approximate Cost for a $10,000 Investment table that shows the total assumed investment cost over the 1-, 3-, 5-, and 10-year periods.

5Fee limitations have been put in place for this Portfolio. Please see Program Fee below for details. 6 Voluntary Fee waivers are in place for this Portfolio. Please see Program Fee below for details 7 The Program Fee (and, if necessary, the State Fee) will be waived in whole or in part in the event that the Portfolio's expenses would result in a negative return for the U.S. Treasury Money Market Portfolio. For more information, see Program Fee below.

Program Fee. Each Portfolio is charged a Program Fee for administration and management of the College Investment Plan. The Program Manager receives the Program Fee, which equals 0.05% per year of the assets of each Portfolio. Payment of the Program Fee by the Portfolio is already reflected in the Portfolio’s NAV.The Program Fee (and, if necessary, the State Fee) will be waived in whole or in part in the event that the combination of the Underlying Fund Expenses, State Fee, and the Program Fee would result in a negative return for U.S. Treasury Money Market Portfolio. Any Program Fee amounts waived under this arrangement will not be reimbursed to T. Rowe Price by the U.S. Treasury Money Market Portfolio or the College Investment Plan.The Program Fee will be voluntarily waived on Extended Equity Market Index Portfolio and Global Equity Market Index Portfolio from November 18, 2020, until the underlying Fund changes for these Portfolios, which begin in January 2021, are completed. The Program Fee will be voluntarily waived on Bond and Income Portfolio until such time as the Portfolio’s underlying Fund, Spectrum Income Fund, is exchanged from Investor Class to I Class, if this Fund offers the I Class in the future.Program Fee Expense Limitation On Certain Portfolios. For Portfolio 2039, Portfolio 2036, and Equity Portfolio, the aggregate Program Fee plus Estimated Underlying Fund Expenses and State Fee may not exceed 0.69% of each Portfolio's average net assets in any year. Additionally, for Portfolio 2033, the aggregate Program Fee plus Estimated Underlying Fund Expenses and State Fee may not exceed 0.68% of the Portfolio's average net assets in any year. If necessary, to remain at the designated limit, the Program Manager will reduce the rate of the Program Fee charged to these Portfolios. Service-Based and Other Fees. We reserve the right to charge additional service-based and other Fees if we determine them to be necessary and reasonable.Receipt of Fees. All Fees collected by the Trustee are used to administer the College Investment Plan.

4

1 Portfolio 2021, Portfolio 2024, and Portfolio 2027 will be moved into Portfolio for Education Today in 2021, 2024, and 2027, respectively.At those times, the Portfolios will bear the expenses of Portfolio for Education Today, which are likely to be lower than the expenses shown in this table.

Investment Options One Year Three Years Five Years Ten Years

Portfolio 2039 $60 $187 $326 $732

Portfolio 2036 $60 $187 $326 $732

Portfolio 2033 $62 $193 $336 $754

Portfolio 2030 $64 $200 $349 $780

Portfolio 20271 $66 $207 $361 $808

Portfolio 20241 $55 $174 $303 $680

Portfolio 20211 $39 $124 $216 $487

Portfolio for Education Today $39 $124 $216 $487

Equity Index 500 Portfolio $16 $52 $90 $205

Equity Portfolio $60 $187 $326 $732

Extended Equity Market Index Portfolio $41 $128 $224 $505

Global Equity Market Index Portfolio $40 $127 $222 $499

Balanced Portfolio $58 $183 $318 $714

Bond and Income Portfolio $69 $218 $379 $847

Inflation Focused Bond Portfolio $37 $116 $202 $456

U.S. Bond Enhanced Index Portfolio $23 $71 $124 $280

U.S. Treasury Money Market Portfolio $41 $128 $224 $505

As of November 30, 2020

The following table compares the approximate cost of investing in the College Investment Plan over different periods of time. Your actual cost may be higher or lower. The table is based on the following assumptions:

• A $10,000 contribution is invested for the time period shown.

• A 5% annually compounded rate of return on the amount invested throughout the period.

• The Account is redeemed at the end of the period shown to pay for Qualified Education Expenses.

• The table does not consider the impact of any potential state or federal taxes on contributions or distributions.

• Total annual asset-based Fees remain the same as those shown in the Fee Structure Model table above.

• The table shows the weighted average of the Fund expenses as of November 30, 2020, and assumes these expenses remain static throughout the entire 10-year period. The actual weighted average may be higher or lower.

Approximate Cost for a $10,000 Investment

5

• The following descriptions are added to the section “The Underlying Funds Characteristics” beginning on page 20 under T. Rowe Price Funds Focusing on Equities (Stock Funds):

Small-Cap Index Fund—I Class: Seeks to match the investment return of small-capitalization U.S. stocks by tracking the performance of the Russell 2000® Index. Invests in the stocks in the index using a full replication strategy.

Mid-Cap Index Fund—I Class: Seeks to match the investment return of mid-capitalization U.S. stocks by tracking the performance of the Russell Select Midcap Index. Invests in the stocks in the index using a full replication strategy.

U.S. Large Cap Core Fund—I Class: Seeks long-term capital growth through investments in stocks of large-capitalization U.S. companies. The fund takes a core approach to investing, which provides exposure to both growth and value styles.

Emerging Markets Discovery Stock Fund—I Class: Seeks long-term growth of capital through investments primarily in the common stocks of companies that are undervalued and located (or with primary operations) in emerging markets.

• The following descriptions are added to the section “The Underlying Funds Characteristics” beginning on page 20 under T. Rowe Price Funds Focusing on Fixed Income (Bond and Money Market Funds):

U.S. Limited Duration TIPS Index Fund—I Class: Seeks to track the investment returns of the Bloomberg Barclays U.S. 1-5 Year Treasury TIPS Index, which measures the performance of inflation protected securities issued by the U.S. Treasury with remaining maturities between one and five years.

QM U.S. Bond Index Fund—I Class: Seeks to match or incrementally exceed the performance of the U.S. investment-grade bond market by tracking the Bloomberg Barclays U.S. Aggregate Bond Index, which is a broadly diversified index that typically consists of investment-grade, fixed income instruments with intermediate- to long-term maturities, and relying on quantitative models in an attempt to generate a modest amount of outperformance over the index.

CCON0061215 202009-1313296

K117-148

August 2020

IMPORTANT UPDATE TO THE MARYLAND SENATOR EDWARD J. KASEMEYER COLLEGE INVESTMENT PLAN

This supplement amends the Maryland Senator Edward J. Kasemeyer College Investment Plan Disclosure Statement, dated December 2019 as supplemented April 2020. You should review this information carefully and keep it with your current copy of the Plan Disclosure Statement.

Clarification of Maryland’s Tax Treatment of Distributions Used to Repay Principal or Interest of a Beneficiary’s Sibling’s Qualified Education Loan

Under the Plan Disclosure Statement Summary the answer to “How does the College Investment Plan work?” is replaced with the following:

When you enroll in the College Investment Plan, you choose to invest in one or more Investment Options based upon your investing preferences and risk tolerance. Any earnings in your Account are tax-deferred, and distributions are federally tax-free if used for Qualified Education Expenses. Distributions are also State tax-free when used for Qualified Education Expenses, except when used to pay principal or interest on a qualified education loan for the sibling of a beneficiary, which may have State tax implications.

Paragraph (7) under “Qualified Education Expenses” within the Glossary is replaced with the following:

(7) Amounts paid as principal or interest on any qualified education loan (as defined in Section 221(d) of the Code) of the Beneficiary or a sibling of the Beneficiary.

Note: The amount of distributions that may be treated as Qualified Education Expenses with respect to the Beneficiary’s or the Beneficiary’s sibling’s qualified education loans shall not exceed a lifetime maximum of $10,000 per education loan borrower.

State tax note: Amounts paid as principal or interest on any qualified education loan of a sibling of the Beneficiary are not treated as Qualified Education Expenses under Maryland law and will require recapture of certain amounts if the distribution’s payee has previously utilized the State’s income deduction for contributions to that MCIP account.

The following replaces the last paragraph on page 30:

Maryland Tax-Free Distributions for Qualified Expenses.

Except when used to repay principal or interest of a qualified education loan of a sibling of the Beneficiary, all of your Account’s investment gains, if any, are distributed free of State income taxes when money is distributed to pay for Qualified Education Expenses. If the payee is not a Maryland taxpayer, you should check with the payee’s home state for potential state tax implications of distributions.

CCON0052567202006-1224152 K117-045

CCON0037730 202002-1071945

07TRP120077

April 2020

IMPORTANT UPDATE TO THE MARYLAND SENATOR EDWARD J. KASEMEYER COLLEGE INVESTMENT PLAN

This supplement amends the Maryland Senator Edward J. Kasemeyer College Investment Plan Disclosure Statement, dated December 2019. You should review this information carefully and keep it with your current copy of the Plan Disclosure Statement. Additional Qualified Expenses The following changes relate to recent amendments to Section 529 of the Internal Revenue Code that expand the permitted uses of distributions from 529 programs such as the College Investment Plan. The following are added as new last paragraphs under “Qualified Education Expenses” within the Glossary:

6) Expenses for fees, books, supplies, and equipment required for a Beneficiary’s participation in an apprenticeship program registered and certified with the Secretary of Labor under Section 1 of the National Apprenticeship Act; and

7) Amounts paid as principal or interest on any qualified education loan (as defined in Section 221(d) of the

Code) of the Beneficiary or a sibling of the Beneficiary. Note: The amount of distributions that may be treated as Qualified Education Expenses with respect to the Beneficiary’s or the Beneficiary’s sibling’s qualified education loans shall not exceed a lifetime maximum of $10,000 per education loan borrower. The following sentence is removed from “Qualified Education Expenses” within the Glossary:

Student loan expenses are not considered by the IRS to be Qualified Education Expenses.

2019/2020 Maryland Senator Edward J. Kasemeyer College Investment PlanDisclosure Statement & Enrollment Form

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This Disclosure Statement is part of the Enrollment Kit for the Maryland Senator Edward J. Kasemeyer College Investment Plan and the Maryland Senator Edward J. Kasemeyer Prepaid College Trust. The Enrollment Kit consists of a Highlights Booklet and Disclosure Statements for both Maryland 529 Plans, with accompanying New Account Enrollment forms. The Enrollment Kit has been identified by Maryland 529 as the offering materials intended to provide substantive disclosure of the terms and conditions of an investment in the Maryland 529 Plans. The Enrollment Kit is designed to comply with the Disclosure Principles Statement No. 6, adopted by the College Savings Plans Network on July 1, 2017.

Neither Maryland 529 nor T. Rowe Price Associates, Inc. (or its related entities), insures or guarantees Accounts or investment returns on Accounts. Investment returns are not guaranteed. Your Account may lose value.

Section 529 Plans offered by other states may offer tax or other benefits to taxpayers or residents of those states that are not available in the Maryland Senator Edward J. Kasemeyer College Investment Plan, and taxpayers or residents of those states should consider such state tax treatment or other state benefits such as financial aid, scholarship funds, and protection from creditors, if any, before making an investment decision.

Section 529 Plans are intended to be used only to save for Qualified Education Expenses. These Plans are not intended to be used, nor should they be used, by any taxpayer for the purpose of evading federal or state taxes or tax penalties. Taxpayers may wish to seek tax advice from an independent tax advisor based on their own particular circumstances.

Account Holders should periodically assess and, if appropriate, adjust their investment choices with their time horizon, risk tolerance, and investment objectives in mind.

Investing is an important decision. Please read all Offering Materials in their entirety before making an investment decision.

Table of ContentsGlossary ............................................................................................................................................................................................................................ 3

Plan Disclosure Statement Summary .................................................................................................................................................................... 6

How to Participate ........................................................................................................................................................................................................ 8

Fees and Costs ............................................................................................................................................................................................................... 9

Approximate Cost for a $10,000 Investment .................................................................................................................................................... 10

General Risks ................................................................................................................................................................................................................. 11

How to Contribute to Your Account .................................................................................................................................................................... 12

Investment Information ............................................................................................................................................................................................ 14

Portfolios ........................................................................................................................................................................................................................ 15

The Underlying Fund Characteristics .................................................................................................................................................................. 20

Investment Risks .......................................................................................................................................................................................................... 23

Investment Performance .......................................................................................................................................................................................... 25

Maintaining Your Account ....................................................................................................................................................................................... 26

How to Take a Distribution ...................................................................................................................................................................................... 27

Terminating Your Account ...................................................................................................................................................................................... 28

Key Federal Tax Issues ............................................................................................................................................................................................... 28

Key State Tax Issues ................................................................................................................................................................................................... 30

Plan Governance and Administration ................................................................................................................................................................. 31

General Provisions ...................................................................................................................................................................................................... 32

Privacy Policy ................................................................................................................................................................................................................ 34

Representations, Warranties, Certifications, and Acknowledgements ................................................................................................... 34

3888. 4MD. GRAD

Maryland Senator Edward J. Kasemeyer College Investment Plan Disclosure StatementThis Disclosure Statement contains important information you should review before opening an Account in the Maryland Senator Edward J. Kasemeyer College Investment Plan, including information about the benefits and risks of investing. We believe this information is accurate as of the date of this Disclosure Statement, but it is subject to change without notice. No one is authorized to provide information that is different from the information in the most current form of this Disclosure Statement. Please read it carefully and save it for future reference. Certain capitalized terms used in this Disclosure Statement are defined terms that have the following meanings:

GlossaryABLE: Achieving a Better Life Experience (ABLE) accounts are tax-advantaged savings accounts established under Section 529A of the Internal Revenue Code that are used to pay qualified disability expenses.

Account: An Account in the College Investment Plan established by an Account Holder for a Beneficiary.

Account Holder or you: An individual or legally recognized entity such as a corporation (for-profit or nonprofit), partnership, association, trust, foundation, guardianship, or estate that signs a New Account Enrollment form establishing an Account and such form has been accepted by the Program Manager as agent for the Trustee. In certain cases, the Account Holder and Beneficiary may be the same person.

Account Holder’s Successor: An individual or legally recognized entity named in the New Account Enrollment form or otherwise in writing to the College Investment Plan by the Account Holder, who may exercise the rights of the Account Holder under the College Investment Plan if the Account Holder dies or is declared legally incompetent (unless, in the latter case, a power of attorney, guardian, conservator, or similar individual is in place and is recognized by the Plan to act on behalf of the legally incompetent Account Holder).

Automatic Monthly Contributions: A service in which an Account Holder authorizes us to transfer money, on a recurring basis, from a bank or other financial institution to an Account in the College Investment Plan.

Account Protection Program: A T. Rowe Price program that restores eligible Account losses to an Account Holder due to unauthorized activity, provided certain security best practices are followed by the Account Holder.

Beneficiary or Student: The individual designated by an Account Holder, or as otherwise provided in writing to us, to receive the benefit of an Account.

Board: The Maryland 529 Board.

Code: Internal Revenue Code of 1986, as amended. There are references to various sections of the Code throughout this Disclosure Statement, including Section 529 as it currently exists and as it may subsequently be amended and any regulations adopted under it.

College Investment Plan: The Maryland Senator Edward J. Kasemeyer College Investment Plan.

Custodian: The individual who executed a New Account Enrollment form on behalf of an Account Holder who is a minor. Generally, the Custodian will be required to perform all duties of the Account Holder with regard to the Account until the Account Holder attains the age of majority, is otherwise emancipated, or the Custodian is changed, removed, or released. The Custodian of an Account funded from an UGMA/UTMA account may not change the Account Holder or Beneficiary.

Declaration: The Declaration of Trust establishing the Trust, effective June 13, 2001, and as may be amended from time to time by the Trustee.

Disabled or Disability: Condition of a Beneficiary who is unable to do any substantial gainful activity because of his/her physical or mental condition. The Account Holder should maintain medical documentation to verify this condition.

Distribution Tax: A federal surtax required by the Code that is equal to 10% of the earnings portion of a Non-Qualified Distribution that is not due to the Beneficiary’s death, Disability, attendance at a U.S. military academy, or receipt of a scholarship.

Eligible Educational Institution: A higher institution as defined in Section 529(e) of the Code. Generally, the term includes accredited postsecondary educational institutions or vocational schools offering credit toward a bachelor’s degree, an associate’s degree, a graduate level or professional degree, or another recognized postsecondary credential. The institution must be eligible to participate in student financial aid programs under Title IV of the Higher Education Act of 1965 (20 U.S.C.§1088).

You can generally determine if a school is an Eligible Educational Institution by searching for its Federal School Code (identification number for schools eligible for Title IV financial aid programs) at studentaid.ed.gov/sa/fafsa.

Enabling Legislation: The law that established Maryland 529 (formerly known as the College Savings Plans of Maryland), its Board, and the college savings programs administered by the Board (Md. Code Annotated Education Art. §18-1901 et seq. and §18-19A-01 et seq.).

FDIC: Federal Deposit Insurance Corporation.

Fees: The State Fee, underlying mutual Fund expenses, and any other costs and charges associated with the College Investment Plan.

Funds: T. Rowe Price mutual Funds that compose the Portfolios.

GoTuition®: An online gifting tool in which an you can create a gifting profile for your Beneficiary that can be shared with friends

GoTuition is a trademark of T. Rowe Price Group, Inc.

4 MARYLAND 529.COM

and family and enables you to receive gifts directly to your Beneficiary’s College Investment Plan Account.

Group of Accounts: All Accounts held by one Account Holder for the same Beneficiary.

Investment Option or Portfolio: The investment Portfolios available to Account Holders in the College Investment Plan.

IRS: Internal Revenue Service.

Maryland 529: An independent, nonprofit State agency formerly known as the College Savings Plans of Maryland.

Medallion Signature Guarantee: A verification of your signature used to prevent fraud. You can obtain a Medallion Signature Guarantee from many banks, savings institutions, and broker-dealers. Guarantees from notaries public or organizations that do not provide reimbursement in the case of fraud are not acceptable in place of a Medallion Signature Guarantee.

Member of the Family or Family Member: An individual as defined in Section 529(e)(2) of the Code. Generally, this definition includes a Beneficiary’s immediate family members. A Member of the Family means an individual who is related to the Beneficiary as follows:

• A son or daughter or a descendant of either;

• A stepson or stepdaughter or a descendant of either;

• A brother, sister, stepbrother, or stepsister;

• The father or mother or an ancestor of either;

• A stepfather or stepmother;

• A son or daughter of a brother or sister;

• Brother or sister of the father or mother;

• A son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law;

• The spouse of the Beneficiary or the spouse of any individual described above; or

• A first cousin of the Beneficiary.

For purposes of determining who is a Member of the Family, a legally adopted or foster child of an individual is treated as the child of that individual by blood. The terms “brother” and “sister” include half-brothers and half-sisters.

NAV: The net asset value per share or unit in a Portfolio. NAVs are calculated for each Portfolio after the New York Stock Exchange (NYSE) closes each day the NYSE is open for business. The NAV is calculated by dividing the value of a Portfolio’s net position (total assets minus liabilities) by the number of outstanding units or shares in the Portfolio. NAVs of the Funds are calculated in a similar manner, based on the fair market value of the Fund’s holdings.

Neutral Allocation: A predetermined asset allocation that does not reflect any tactical decisions by T. Rowe Price to overweight or underweight a particular asset class or sector based on market outlook.

New Account Enrollment: A participation agreement between an Account Holder and the Trust, establishing the obligations of each and prepared in accordance with the provisions of the College Investment Plan.

Non-Qualified Distributions: Distributions for any purpose other than to pay Qualified Education Expenses, or Rollover Distributions. Income taxes and the Distribution Tax generally are applied. However, Non-Qualified Distributions also include distributions where income taxes are applied but not the Distribution Tax, which are distributions made because a Beneficiary received a scholarship, grant, and/or Tuition Remission, or is attending a U.S. military academy, and distributions payable upon the Beneficiary’s death or Disability.

Plan Officials: The State; Maryland 529; the Board; the Trustee; the Trust; any other agency of the State; the Program Manager (including its affiliates and agents); and and any other counsel, advisor, or consultant retained by, or on behalf of, those entities and any employee, officer, official, or agent of those entities.

Program Management Services: The services provided to the Accounts, the Trust, the College Investment Plan, and the Trustee by the Program Manager pursuant to the terms of the Services Agreement. These services include investment, recordkeeping, and other administrative services.

Program Manager: The institution selected by the Board to provide the Program Management Services, as an independent contractor, on behalf of the College Investment Plan, the Trust, and the Trustee. T. Rowe Price is currently engaged as Program Manager.

Qualified Distribution: A distribution where income taxes and the Distribution Tax are not applied. These include distributions that are:

1) Used to pay Qualified Education Expenses (including distributions used to pay Qualified Education Expenses that were refunded by the Eligible Educational Institution and recontributed to a Qualified Tuition Program for the same Beneficiary within 60 days of the refund) or

2) Rollover Distributions.

Qualified Education Expenses: Qualified Education Expenses as set forth in Section 529 of the Code. Generally, these include the following:

1) Tuition, fees, and the costs of textbooks, supplies, and equipment required for the enrollment or attendance of a Student at an Eligible Educational Institution;

2) Certain costs of room and board of a Student during any academic period during which the Student is enrolled at least half time at an Eligible Educational Institution;

3) Expenses for “special needs” Students that are necessary in connection with their enrollment or attendance at an Eligible Educational Institution (as of the date of this Disclosure Statement, “special needs” Student has not been defined in the Code or by the IRS);

4) Expenses for the purchase of computers and peripheral equipment (e.g., printers), computer software, and internet access and related services, to the extent that such items or services are used primarily by the Beneficiary during any of the years the Beneficiary is enrolled at an Eligible Educational Institution; and

5) Tuition expenses in connection with enrollment or attendance at an elementary or secondary public, private,

5888. 4MD. GRAD

or religious school (up to a maximum of $10,000 per year per Beneficiary).

Student loan expenses are not considered by the IRS to be Qualified Education Expenses.

Qualified Tuition Program or 529 plan: A Qualified Tuition Program under Section 529 of the Code.

Rollover Distribution: A transfer of assets between Qualified Tuition Programs for the same beneficiary, provided another rollover or transfer for the same beneficiary has not occurred in the previous 12 months, or for a different beneficiary, provided that the receiving beneficiary is a Member of the Family of the original beneficiary (as defined in this Plan Disclosure Statement). Rollover Distributions also include a transfer of assets from a Qualified Tuition Program to an ABLE account for the same Beneficiary or for a different beneficiary, provided that the receiving beneficiary is a Member of the Family of the original Beneficiary. Currently, federal law requires rollovers from Qualified Tuition Programs to ABLE accounts be completed by December 31, 2025.

Services Agreement: The agreement between the Board and T. Rowe Price, as the Program Manager, to provide the College Investment Plan with administrative, account servicing, marketing and promotion, and investment management services. The agreement between the Board and the Program Manager is now effective and will terminate on June 30, 2024. Under the Services Agreement, the Program Manager’s services may be delayed or suspended in the case of extraordinary circumstances such as fire, flood, or other acts of God.

State: The State of Maryland.

State Contribution Program: A program designed to help low- to middle-income Maryland families save money for higher education by offering a $250 or $500 contribution for eligible families who open a new College Investment Plan Account after December 31, 2016, complete an annual application beginning January 1 through May 31, and make at least the minimum contribution between January 1 and November 1 (based on their taxable income).

Target Allocation: An asset allocation that has been adjusted to reflect tactical decisions by T. Rowe Price to overweight or underweight a particular asset class or sector based on market outlook.

T. Rowe Price: T. Rowe Price Associates, Inc., Program Manager.

Trust: The Maryland College Investment Trust created by the Declaration.

Trustee: The Board, when acting in its capacity as Trustee for the Trust.

Tuition: The charges assessed by an Eligible Educational Institution for enrollment at the institution.

Tuition Assistance: Scholarships, grants, Tuition Remission, or attendance at a U.S. military academy.

Tuition Remission: A benefit earned by certain individuals employed by Eligible Educational Institutions whereby family members who attend these or other Eligible Educational

Institutions may receive partial or full waivers for payment of Qualified Education Expenses.

UGMA/UTMA: Uniform Gifts to Minors Act/Uniform Transfers to Minors Act.

U.S. Address: An address in the United States including all U.S. Territories (i.e., American Samoa, Guam, Northern Mariana Islands, Puerto Rico, and the U.S. Virgin Islands). U.S. Address also includes APO, FPO, and DPO addresses.

We or our: Maryland 529, the College Investment Plan, the Board, as Trustee, and/or T. Rowe Price.

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Plan Disclosure Statement SummaryWhat is the College Investment Plan? The College Investment Plan is a 529 plan offered by Maryland 529, an independent, nonprofit State agency. The College Investment Plan is designed to help individuals and families save for education expenses in a tax-advantaged way and offers tax-free growth potential, generous contribution limits, attractive Investment Options, and professional investment management.

Who is responsible for the College Investment Plan? Maryland 529 is the issuer of the College Investment Plan. T. Rowe Price Associates, Inc., has been selected as the Program Manager and investment advisor to the College Investment Plan through June 30, 2024.

How does the College Investment Plan work? When you enroll in the College Investment Plan, you choose to invest in one or more Investment Options based upon your investing preferences and risk tolerance. Any earnings in your Account are tax-deferred, and distributions are federally and Maryland State tax-free if used for Qualified Education Expenses.

What are the risks associated with the College Investment Plan? The College Investment Plan is not insured or guaranteed. Investment returns will vary depending upon the performance of the Portfolios you choose. Depending on market conditions, you could lose all or a portion of your investment. The College Investment Plan is also subject to legislative and tax risks, and each Investment Option carries particular investment-related risks based on the composition of the underlying Funds in which it invests. For more information, see the General Risks and Investment Risks sections.

How do I open an Account? You may enroll online or mail in a completed New Account Enrollment form. We cannot process the New Account Enrollment form if any of the required information, including your signature, is not provided. The Account Holder must be a U.S. citizen, U.S. resident alien, or entity organized in the U.S. and must have a U.S. Address to establish an Account. The Beneficiary must be a natural person (not an entity) and have a Social Security number or tax identification number. For more information, see the How to Participate section.

How do I contribute to my Account? You can fund your Account in a variety of ways: by check, by electronic transfers from your bank, via a monthly contribution program from your bank or your payroll, by rollover from another Qualified Tuition Program, from an Education Savings Account or qualified U.S. Savings Bond, via gifts made by others through the GoTuition® gifting portal, or by receiving assets through the State Contribution Program. Certain minimum contribution amounts and maximum contribution limits apply. For more information, see the How to Contribute to Your Account section.

How do I request maintenance and distributions from my Account? Most updates to your Account can be requested online or by telephone. There are some exceptions; for example, currently, changes to the Account Holder or to the Beneficiary

must be submitted in writing, as well as requests to roll over assets to the College Investment Plan. Some distributions can be requested online and by telephone; however, certain distributions must be requested in writing and may require a Medallion Signature Guarantee. All of these requirements and restrictions may change from time to time; you may call a college savings representative for the most updated options and requirements for requesting maintenance and distributions. For more information, see the Maintaining Your Account, How to Take a Distribution, and Terminating Your Account sections.

What are the Fees associated with the College Investment Plan? The College Investment Plan has no commissions, loads, sales charges, annual Fees, or enrollment Fees. The Investment Options bear a pro-rata share of the expenses of the underlying Funds, as well as a 0.05% State Fee, which is used to offset expenses associated with administering the College Investment Plan. A detailed description of Fees associated with the College Investment Plan can be found in the section titled Fees and Costs.

What are the federal and state tax considerations? Contributions are not tax-deductible at the federal level. However, Maryland taxpayers may receive a maximum $2,500 income subtraction modification from their State adjusted gross income annually per Beneficiary for contributions to the College Investment Plan (certain exceptions apply; for example, Account Holders who receive a State Contribution Program contribution in a given year are not eligible for the $2,500 subtraction for any of their College Investment Plan Accounts that year).

To receive the full federal tax benefit, an Account must be used to pay for Qualified Education Expenses for a Beneficiary. The earnings portion of a distribution that is not used to pay for a Beneficiary’s Qualified Education Expenses may be subject to federal and state income taxes as well as the Distribution Tax.

Generally, gifts to an individual that exceed the annual gift tax exclusion amount in a single year would be subject to the federal gift tax. However, contributions to 529 plans of up to five times the annual gift tax exclusion can be made in a single year for a Beneficiary and averaged over five years to qualify for exclusion from the federal gift tax. Talk to a tax advisor for more details.

How does the State income deduction work for the College Investment Plan? Contributions made in excess of $2,500 per Beneficiary in a single year may be carried forward and subtracted from your State adjusted gross income for up to 10 additional consecutive years. The following example helps to illustrate how this deduction applies:

• If you contribute $27,500 in Year 1 to one or more Accounts for your child, you can subtract $2,500 per tax year for each of Years 1 through 11 (11 x $2,500 = $27,500). If you also contribute $27,500 in Year 1 to one or more Accounts for another child, you can subtract an additional $2,500 per tax year for each of Years 1 through 11, for a total subtraction of $5,000 per tax year from State adjusted gross income.

• For additional information on College Investment Plan tax benefits for Maryland taxpayers, please refer to Maryland Income Tax Administrative Release No. 32, which can be obtained at MarylandTaxes.com or by calling 1-800-MD-TAXES.

GoTuition is a trademark of T. Rowe Price Group, Inc.

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• To take advantage of the income subtraction for a particular year, your contribution needs to be completed online (processed by your bank) or postmarked by December 31 of that year.

• You will not receive a tax form reporting your annual contributions to the Plan and, depending on when the contribution is actually received by T. Rowe Price, it is possible that the contribution will receive a trade date in the following year (even if it was postmarked by December 31). Therefore, you should keep detailed records (confirmation statements, Account statements, proof of postmark by December 31, etc.) in order to substantiate contributions for tax reporting purposes.

• If you no longer pay Maryland income tax, you will no longer receive the Maryland State income deduction. You should check with your new state of residence regarding its state tax benefits, if any, available for your 529 plan investment.

See the sections Key Federal Tax Issues and Key State Tax Issues for more information.

What are the Investment Options for the College Investment Plan? As of the date of this Plan Disclosure Statement, the College Investment Plan offers 17 different Investment Options—eight enrollment-based Portfolios and nine fixed Portfolios. The enrollment-based Portfolios are designed to automatically shift to more conservative investments over time, while the fixed Portfolios are designed to keep their asset allocations constant.

Regardless of the Investment Option(s) you choose, you should monitor your investments on a periodic basis and, if appropriate, adjust your Investment Option(s) with your time horizon, risk tolerance, and investment objectives in mind. For more information on the Investment Option(s), see the Investment Information and Portfolios sections.

Can I change my Investment Option? The Code currently allows you to move money or transfer from one Investment Option (Portfolio) to another twice per calendar year for the same Beneficiary. If you have multiple Investment Options for a Beneficiary, all changes for that Beneficiary requested on the same day are expected to count as a single change to your Investment Options. For more information on making changes to your Account, see the Maintaining Your Account section.

This summary is intended only to introduce some of the College Investment Plan’s features and answer frequently asked questions. Before investing, you must be sure to read the more detailed explanation of all the College Investment Plan’s features in the Disclosure Statement.

Additional information (for example, Account access, updated performance information, and updated allocation information) is available online at Maryland529.com or by calling 888.4MD.GRAD (463.4723). Representatives are available Monday through Friday from 8 a.m. to 8 p.m. eastern time.

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How to ParticipateAccount Holders. You may apply to participate online or through the New Account Enrollment form. Either type of application acts as a contract between the Account Holder and the Maryland College Investment Trust (Trust), establishing the obligations of each. We cannot process the application if any of the required information (such as your signature) is not provided. The Program Manager, as agent for the Trustee, has the discretion to determine whether a New Account Enrollment form is complete and accepted and whether the Account has been opened.

The Account Holder must be a U.S. citizen, a U.S. resident alien, or an entity that is organized in the U.S. and must have a valid U.S. Address. An Account may have only one Account Holder. You may also direct in writing that someone other than you may request or receive information regarding the Account.

Custodians for Minor Account Holders. If the Account Holder is a minor and the Account has not been funded with assets from an UGMA or UTMA account, a Custodian must complete the New Account Enrollment form on the minor’s behalf. An Account may have only one Custodian, who must be a U.S. citizen (or a U.S. resident alien) with a valid U.S. street address. The Custodian maintains the Account on the minor’s behalf until the minor reaches the age of majority (currently, age 18 in Maryland). Upon the Account Holder reaching the age of majority, the Custodian ceases to have authority over the Account. However, the former minor is required to complete necessary forms to take control of the Account and remove the Custodian.

Custodians for UGMA/UTMA-Funded Accounts. If the Account Holder is a minor and the Account is funded from assets originally held in an UGMA or UTMA account, the Account Holder cannot be changed. Additionally, the Custodian retains the capacity to act on behalf of the Account until he or she informs the College Investment Plan that the terms of the original UGMA or UTMA have been satisfied. Neither the Trust, the Trustee, the Program Manager, or any other entity will be liable for any consequences related to a custodian’s improper use, transfer, or characterization of custodial funds.

Non-U.S. Addresses. In order to open an Account, you must have a valid U.S. Address, which includes military addresses such as APO and FPO addresses. If you change your Account address to an address outside the U.S., restrictions will be placed on your Account(s) and additional contributions will no longer be accepted. If your permanent residential address changes to an address in the U.S. and you update this information in our records, the restrictions will be removed.

Trusts, Corporations, and Other Entities as Account Holders. If you are a trust, partnership, corporation, association, estate, or another acceptable type of entity, you must submit documentation to us to verify the existence of the entity and identify the individuals who are eligible to act on the entity’s behalf. Examples of appropriate documentation include a trust agreement, partnership agreement, corporate resolution, articles of incorporation, bylaws, or letters appointing an executor or personal representative. You must submit this documentation when an Account is established. We will not be able to open the Account until we receive all of the information required on the

New Account Enrollment form, including the documentation that verifies the existence of the Account Holder. If you are an agency or instrumentality of a state or local government or a tax-exempt organization as defined in the Code and are establishing an Account as a scholarship fund, you must provide verification (e.g., an IRS determination letter) of your exempt status when the Account is opened.

Account Holder’s Successor. The Account Holder’s Successor becomes the Account Holder if you die or are declared legally incompetent (unless, in the latter case, a power of attorney, guardian, conservator, or similar individual is in place and is recognized by the Plan to act on your behalf). You may designate an Account Holder’s Successor on the New Account Enrollment form or otherwise in writing or change a previous designation by providing us with written notice.

All identically registered Accounts must have the same Account Holder’s Successor. If the Account Holder is an entity, the Account Holder’s Successor will only become the Account Holder in the event of the entity’s dissolution, not in the event of the death of the individual authorized to act on behalf of the entity (for example, the trustee, partner, or other authorized individual).

Beneficiary. You can set up an Account for your child, grandchild, spouse, another relative, yourself, or even someone not related to you. Each Account can have only one Beneficiary at any time, and you must provide your Beneficiary’s Social Security number or tax identification number at the time you open your Account. The Beneficiary may be of any age; however, the Beneficiary must be an individual and not a trust or other entity. A Beneficiary does not have to be named on the New Account Enrollment form if you are an agency or instrumentality of a state or local government, or a tax-exempt organization as defined in the Code, and the Account has been established as a scholarship fund. If an Account is funded from assets originally held in an UGMA or UTMA account, the Beneficiary on the Account cannot be changed.

Acknowledgement of Terms. A completed New Account Enrollment form includes an acknowledgment that you agree to be bound by the terms and conditions of this Disclosure Statement. This Disclosure Statement and the New Account Enrollment form constitute the entire agreement between you and the Trust.

Customer Identification Verification. Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an Account and, for entities, persons who manage the entity or beneficially own more than 25% of an entity. When you complete a New Account Enrollment form, we will ask you for the name, U.S. street address, date of birth, and Social Security number or tax identification number for the Account Holder (and any person(s) opening an Account on behalf of the Account Holder, such as a Custodian, agent under power of attorney, trustee, or corporate officer) as well as for any beneficial persons of entities as described above. This information is necessary to properly verify the identity of the

You can open an Account for just about anyone, even for yourself.

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FEE STRUCTURE(As of October 1, 2019)

Investment OptionsUnderlyingFund Expenses1

State Fee2

Total Annual Asset-Based Fees3

Portfolio 2039 0.64% 0.05% 0.69%

Portfolio 2036 0.64% 0.05% 0.69%

Portfolio 2033 0.63% 0.05% 0.68%

Portfolio 2030 0.63% 0.05% 0.68%

Portfolio 2027 0.63% 0.05% 0.68%

Portfolio 2024 0.59% 0.05% 0.64%

Portfolio 2021 0.44% 0.05% 0.49%

Portfolio for Education Today4 0.39% 0.05% 0.44%

Equity Index 500 Portfolio 0.21% 0.05% 0.26%

Equity Portfolio 0.64% 0.05% 0.69%

Extended Equity Market Index Portfolio 0.35% 0.05% 0.40%

Global Equity Market Index Portfolio 0.35% 0.05% 0.40%

Balanced Portfolio 0.62% 0.05% 0.67%

Bond and Income Portfolio 0.62% 0.05% 0.67%

Inflation Focused Bond Portfolio 0.39% 0.05% 0.44%

U.S. Bond Enhanced Index Portfolio 0.30% 0.05% 0.35%

U.S. Treasury Money Market Portfolio 0.39% 0.05% 0.44%

person(s) opening the Account. If we do not receive all of the required information, we may delay the opening of the Account or be unable to open the Account. We will use this information to verify the Account Holder’s identity and if, after making reasonable efforts, we are unable to verify the Account Holder’s identity, we are allowed to take any action permitted by law, including closing the Account and redeeming the Account at the NAV calculated the day the Account is closed. Any redemption

made under these circumstances may be considered a Non-Qualified Distribution, subject to applicable taxes, including the Distribution Tax. Documents in Good Order. To process any transaction, all necessary documents must be received in good order by T. Rowe Price or its agent, which means executed when required and properly, fully, and accurately completed.

1Each Portfolio will indirectly bear its pro-rata share of the Fees and expenses of the Funds in which it invests. These Fees are not charged directly to a Portfolio, but they are included in the NAV of the Funds held by the College Investment Plan. The pro-rata share of the Fees and expenses is calculated based on the amount that each Portfolio invests in a Fund and the expense ratio. The expense ratio is expressed as a percentage and represents the amount of operating expenses that are charged to an investor. A Fund’s expense ratio does not reflect brokerage and other transaction costs, although such costs are reflected in the Fund’s NAV and performance. The underlying Fund expenses are based on a weighted average of each Fund’s expense ratio (net of any expense limitations in place), in accordance with the Investment Option’s neutral asset allocations among the applicable Funds as of October 1, 2019. You can visit our website, Maryland529.com, or call us to obtain the most recent weighted average Fund expenses for each Investment Option.2The Trustee, Maryland 529, receives the State Fee of 0.05% based on the assets in the College Investment Plan to help offset certain administrative and marketing expenses associated with administering the College Investment Plan. Payment of the State Fee by each Portfolio is already reflected in the Portfolio’s NAV.3This total is assessed against assets over the course of the year. Please refer to the Approximate Cost for a $10,000 Investment table that shows the total assumed investment cost over the 1-, 3-, 5-, and 10-year periods. 4Portfolio for College was renamed to Portfolio for Education Today, effective November 15, 2019.

Service-Based and Other Fees. We reserve the right to charge additional service-based and other Fees if we determine them to be necessary and reasonable.

Receipt of Fees. All Fees collected by the Trustee are used to administer the College Investment Plan.

Fees and CostsFees. This section provides information regarding the Fees and costs relating to the College Investment Plan. The Board may change the Fees and costs from time to time. Any changes to the Fees will be described by supplement to this Disclosure Statement or in subsequent Disclosure Statements.

The following table shows Fees for investing in the College Investment Plan. For information regarding the State Fee, see footnote 2 below. There are no miscellaneous Fees.

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Investment Options One Year Three Years Five Years Ten Years

Portfolio 2039 $70 $221 $384 $859

Portfolio 2036 $70 $221 $384 $859

Portfolio 2033 $69 $218 $379 $847

Portfolio 2030 $69 $218 $379 $847

Portfolio 20271 $69 $218 $379 $847

Portfolio 20241 $65 $205 $357 $798

Portfolio 20211 $50 $157 $274 $616

Portfolio for Education Today2 $45 $141 $246 $555

Equity Index 500 Portfolio $27 $84 $146 $331

Equity Portfolio $70 $221 $384 $859

Extended Equity Market Index Portfolio $41 $128 $224 $505

Global Equity Market Index Portfolio $41 $128 $224 $505

Balanced Portfolio $68 $214 $373 $835

Bond and Income Portfolio $68 $214 $373 $835

Inflation Focused Bond Portfolio $45 $141 $246 $555

U.S. Bond Enhanced Index Portfolio $36 $113 $197 $443

U.S. Treasury Money Market Portfolio $45 $141 $246 $555

The following table compares the approximate cost of investing in the College Investment Plan over different periods of time. Your actual cost may be higher or lower. The table is based on the following assumptions:

• A $10,000 contribution is invested for the time period shown.

• A 5% annually compounded rate of return on the amount invested throughout the period.

• The Account is redeemed at the end of the period shown to pay for Qualified Education Expenses.

• The table does not consider the impact of any potential state or federal taxes on contributions or distributions.

• Total annual asset-based Fees remain the same as those shown in the Fee Structure table.

• The table shows the weighted average of the Fund expenses as of October 1, 2019, and assumes these expenses remain static throughout the entire 10-year period. The actual weighted average may be higher or lower.

1 Portfolio 2021, Portfolio 2024, and Portfolio 2027 will be moved into the Portfolio for Education Today in 2021, 2024, and 2027, respectively. At those times, the Portfolios will bear the expenses of the Portfolio for Education Today, which are likely to be lower than the expenses shown in this table.

2Portfolio for College was renamed to Portfolio for Education Today, effective November 15, 2019.

As of October 1, 2019

This table can be helpful in comparing costs over a longer period of time.

Approximate Cost for a $10,000 Investment

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General RisksYou should carefully consider the information in this section as well as the other information in this Disclosure Statement, before making any decisions about opening an Account or making any additional contributions. We do not provide legal, financial, or tax advice. You should consult an attorney or a qualified financial or tax advisor with any legal, business, or tax questions you may have.

Principal and Returns Not Guaranteed. Neither your contributions to an Account nor any investment return earned on your contributions is guaranteed by the College Investment Plan, the State, Maryland 529, the Board, the Trustee, T. Rowe Price, any of its affiliates, or by the federal government or any of its agencies. You could lose money (including your contributions) or not make any money by investing in the College Investment Plan.

Market Uncertainties. Due to market uncertainties, the overall market value of the Trust is likely to be highly volatile and could be subject to wide fluctuations in response to factors such as regulatory or legislative changes, worldwide political uncertainties, and general economic conditions, including inflation and unemployment rates. All of these factors are beyond our control and may cause the value of the Trust to decrease (realized or unrealized losses), regardless of a Portfolio’s performance or your selection of Investment Options. For more detailed information concerning investment-related risks, please see the Investment Risks section.

Meeting Education Expenses Not Guaranteed. Even if your Account balance(s) for a Beneficiary meets the maximum allowed under the College Investment Plan and/or you select an enrollment-based Portfolio, there is no assurance that the money in your Account will be sufficient to cover all of the education expenses your Beneficiary may incur, or that the rate of return on your investment will match or exceed the rate at which education expenses may rise each year.

Limited Investment Direction. The IRS currently allows you to move money or transfer from one Portfolio to another twice per calendar year for the same Beneficiary. IRS rules also allow you to move money or transfer from one Portfolio to another when you change Beneficiaries. You may roll over assets for the same Beneficiary from one Qualified Tuition Program to another once in each 12-month period, and you may roll over assets from a Qualified Tuition Program to an ABLE account by December 31, 2025.

Suitability. We make no representation regarding the suitability or appropriateness of the Portfolios as an investment. There is no assurance that any Portfolio will be able to achieve its goals. Other types of investments may be more appropriate depending upon your financial status, tax situation, risk tolerance, age, investment goals, savings needs, and the investment time horizons of you or your Beneficiary.

IRS Regulations Not Final. As of the date of this Disclosure Statement, the IRS has not issued final tax regulations regarding Qualified Tuition Programs. In addition, we have not sought, nor have we received, a private letter ruling from the IRS regarding the status of the College Investment Plan under Section 529 of the Code. The Board may, in its sole discretion, determine to seek such a ruling in the future.

Effect of Future Law Changes. It is possible that future changes in federal or state laws or court or interpretive rulings could adversely affect 529 plans generally, the terms and conditions of the College Investment Plan, or the value of your Account, even retroactively. Specifically, the College Investment Plan is subject to the provisions of and any changes to or revocation of the Enabling Legislation and Section 529 of the Code. In addition, it is our intention to take advantage of Section 529 of the Code; therefore, the College Investment Plan is vulnerable to tax law changes or court or interpretive rulings that might alter the application of federal and/or State taxes to your particular situation.

Discretion of the Trustee. The Board, as Trustee, has the sole discretion to determine which Investment Options will be available in the College Investment Plan. The Trustee may, at any time, alter the Funds that compose an Investment Option. In addition, the Trustee may, at any time, disallow further investments into a particular Portfolio and/or require all investments in a Portfolio to be moved to another Investment Option. The Trustee allows T. Rowe Price’s Asset Allocation Committee to make decisions on allocations within the broad asset classes subject to specific predefined percentage limitations, the allocations among broad asset classes, and the underlying Funds that compose the Investment Options. See Investment Information for more information.

Tax Considerations. The federal and state tax consequences associated with participating in the College Investment Plan can be complex. You should consult a tax advisor regarding the application of tax laws to your particular circumstances. If you or your Beneficiary live outside Maryland, you may also want to compare any Qualified Tuition Program offered by your state with the College Investment Plan. See Key Federal Tax Issues and Key State Tax Issues.

Securities Laws. Interests in your Account in the College Investment Plan may be considered securities. These interests will not be registered as securities, based in part on assurances received by the Trust from the staff of the U.S. Securities and Exchange Commission (SEC) that it would not recommend enforcement action if the interests in your Account were not registered. The interests in your Account have not been registered with the securities regulatory authorities of any state. In addition, neither your Account nor the Portfolios in which your Account is invested have been registered as investment companies under the Investment Company Act of 1940. However, all of the underlying Funds in which the Portfolios invest are registered with the SEC as investment companies under the Investment Company Act of 1940, and the distributor of the College Investment Plan, T. Rowe Price Investment Services, Inc., is registered with the SEC as a broker-dealer under the Securities Exchange Act of 1934 and subject to regulation by the Securities and Exchange Commission and Financial Industry Regulatory Authority, Inc. (FINRA).

An investment in a 529 plan, like any other investment, has risks. Please consult a tax advisor or attorney with questions.

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Release of Custodian. For custodial accounts not funded by an UGMA/UTMA, the Custodian will no longer have the authority to act on the Account once the Account Holder reaches the age of majority.

Death of Account Holder. The Account will be transferred to the Account Holder’s Successor upon completion of necessary paperwork. If an Account Holder’s Successor has not been named on an Account and the Account Holder dies, the personal representative of the Account Holder’s estate is responsible for naming a new Account Holder.

Death of an Account Holder’s Successor. In the event that the Account Holder’s Successor predeceases the Account Holder and the Account Holder fails to designate another Account Holder’s Successor or the Account Holder and Account Holder’s Successor die simultaneously, the personal representative of the Account Holder’s estate is responsible for naming a new Account Holder.

Relationship to Financial Aid. Your Beneficiary may wish to participate in federal, state, or institutional loan, grant, or other programs for funding higher education. If you are the parent of your Beneficiary, assets in the College Investment Plan or another 529 plan would typically be included on the Free Application for Federal Student Aid (FAFSA) form as a parental asset, which is assessed at a lower rate than a Student’s asset would be when determining a family’s expected contribution. Assets owned by the parent of a Beneficiary who is not a dependent are not considered for purposes of FAFSA. In making decisions about eligibility for financial aid programs offered by the U.S. government and the amount of financial aid required, the U.S. Department of Education takes into consideration a variety of factors, including, among other things, the assets owned by your Beneficiary and the assets owned by your Beneficiary’s parents. In addition, your Account may be considered when determining eligibility for Maryland State financial aid programs.

Since the treatment of Account assets on the FAFSA form may have a material adverse effect on your Beneficiary’s eligibility to receive valuable benefits under financial aid programs, you or your Beneficiary should check the following to determine the impact of an investment in the Plan on need-based financial aid programs:

• applicable laws or regulations;

• with the financial aid office of an Eligible Educational Institution; and/or

• with your tax advisor.

Relationship of Your Account to Medicaid Eligibility. It is unclear how local and state government agencies will treat Qualified Tuition Program assets for the purpose of Medicaid eligibility. Although there are federal guidelines under Title XIX of the Social Security Act of 1965, each state administers its own Medicaid program and rules could vary greatly from one state to the next. You should consult with an attorney, a tax advisor, or your local Medicaid administrator regarding the impact of an investment in the College Investment Plan on Medicaid eligibility.

How to Contribute to Your AccountFunding an Account. There are a variety of ways to fund an Account:

• With a contribution by check or money order; credit cards, credit card checks, and other checks drawn on lines of credit are not accepted. All purchases must be paid for in U.S. dollars; checks must be drawn on U.S. banks. For tracking purposes, you should only use money orders to fund existing Accounts and not new Accounts.

• By liquidating assets from other financial instruments such as mutual Funds and individual stocks. Liquidating these assets may have tax consequences. Consult your tax advisor for more information.

• By making contributions into your Account using electronic funds transfer. In certain cases, we may require you to verify your identity prior to initiating an electronic funds transfer.

• Through payroll deduction for participating employers.

• By rolling over assets from another Qualified Tuition Program (including the Maryland Prepaid College Trust) to the College Investment Plan. A rollover between Qualified Tuition Programs for the same beneficiary is restricted to once per 12-month period. The Account Holder and/or the previous Qualified Tuition Program must provide us with an accurate allocation of principal and earnings on the previous account for application to the receiving Account; otherwise, we are required by the IRS to treat the entire rollover contribution as earnings. To roll over assets into an Account in the College Investment Plan, complete a Rollover form. Please visit our website or call us for any of the forms you may need.

• By rolling over Qualified Tuition Program assets from a different beneficiary that is a Family Member. Rollovers between Qualified Tuition Programs for different beneficiaries who are related Family Members are not restricted in the number of times they may occur in a 12-month period (see Changing a Beneficiary, Transferring Assets to Another of Your Accounts). The Account Holder and/or the previous Qualified Tuition Program must provide us with an accurate allocation of principal and earnings on the previous account for application to the receiving Account; otherwise, we are required by the IRS to treat the entire rollover contribution as earnings. To roll over the assets, complete a Rollover form.

• By moving assets from an UGMA/UTMA account. You must indicate on the New Account Enrollment form that the contributions to the Account represent liquidated UGMA/UTMA assets. The minor will become the Account Holder and Beneficiary. The Account must also have a Custodian until the terms of the UGMA/UTMA have been satisfied. Neither the Trust, the Trustee, the Program Manager, or any other entity will be liable for any consequences related to a Custodian’s improper use, transfer, or characterization of custodial funds. Unlike other Accounts in the College Investment Plan, the Beneficiary and Account Holder cannot be changed and distributions cannot be made other than for the benefit of

There are many different ways to contribute to your Account.

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that Beneficiary. Any additional contributions to this type of Account will be treated in the same manner. Liquidating UGMA/UTMA assets to fund an Account may have tax consequences. Consult your tax advisor for more information.

• By moving assets from a Coverdell Education Savings Account. Please indicate on the New Account Enrollment form or with any additional investments that the assets were liquidated from this kind of an account. Making distributions from a Coverdell Education Savings Account to fund an Account for the same Beneficiary is not a taxable transaction. Consult your tax advisor for more information.

• By redeeming qualified U.S. Savings Bonds. In certain cases, you may redeem qualified U.S. Savings Bonds under the Education Tax Exclusion to fund a 529 contribution. Please visit treasurydirect.gov for more information.

• By receiving gift contributions for your Beneficiary through the GoTuition® gifting portal. For gifts received through the GoTuition® gifting portal, the Account Holder may not claim the State income subtraction modification for contributions made by other individuals.

• By receiving assets through the State Contribution Program. Individuals who open a College Investment Plan Account after December 31, 2016, complete an annual application in good order to participate in the State Contribution Program, and make at least the applicable minimum contribution to the Account may receive a $250 or $500 contribution from the State of Maryland. To be eligible, the Beneficiary must be a Maryland resident, and the Account Holder’s Maryland State taxable income cannot exceed $112,500 (if filing as an individual) or $175,000 (if married filing jointly). The Account Holder must submit an annual application to the State Contribution Program beginning January 1 through May 31 and make the minimum contribution between January 1 and November 1. The Maryland General Assembly may make changes to the State Contribution Program in the future that impact the contribution amounts, minimum requirements, or other eligibility requirements. The most up-to-date information can be found at Maryland529.com/Save4College.*

*State Contributions are not guaranteed. The State funding for contributions is limited each fiscal year. As with the entire State budget, the Maryland General Assembly has final approval. If resources are insufficient to fully fund all eligible Accounts, Maryland 529 shall provide contributions in the order in which applications are received in good order and give priority to applications of Account Holders who did not receive a State Contribution in any prior year. If you receive a State Contribution for any Account in a given year, you are not eligible in that year for the income deduction on your State taxes for contributions that you made to that or any other College Investment Plan Account. You should check with your tax advisor regarding your specific situation.

Timing of Contribution Request. Contributions received by T. Rowe Price or its agent in good order before the close of the NYSE, which is normally 4 p.m. eastern time, on any day the NYSE is open for business are processed that day based on the NAV of the Portfolio selected to receive the contribution. Requests received after the close of the NYSE, or on a day that the NYSE is not open for business, are processed the next business day using the NAV for that day.

Minimum Contributions. To open an Account, you must make an initial contribution of at least $25 per Portfolio. Subsequent contributions also require a minimum of $25 per Portfolio.

Maximum Account Balance. You can contribute up to a maximum aggregate Account balance of $500,000 for each Beneficiary (regardless of Account Holder), whether the contributions are made to one or several Accounts. Although no further contributions will be allowed once the maximum aggregate Account balance for a Beneficiary reaches $500,000, it is acceptable for the earnings of the College Investment Plan Account(s) to fluctuate above the maximum limit of $500,000. Should the Board decide to increase this amount, which it may in its sole discretion, additional contributions will be accepted up to the new maximum Account balance. The maximum Account balance does not apply to an Account Holder that is an agency or instrumentality of a state or local government or a tax-exempt organization, as defined in the Code, if the Account has been established as a scholarship fund.

Excess Contributions. Any contributions received in excess of the maximum Account balance level (as determined by the close of business on the day prior to our receipt of your contribution) will be returned to the contributor, without adjustment for gains or losses.

Additional Account Information. For certain contributions, including those from Series EE and Series I U.S. Savings Bonds, Coverdell Education Savings Accounts, and rollovers from other Qualified Tuition Programs, we require additional information from you. This information includes the original amount contributed and any associated earnings. If you do not provide the required documentation, we are obligated by the IRS to treat the entire amount of the contribution as earnings.

Separate Accounting. Contributions to the College Investment Plan are allocated to one or more Accounts in your name, according to your instructions. One Account is established for each Portfolio for a specific Beneficiary and specific Account Holder.

Temporary Withdrawal Restriction. If you make a contribution by check, money order, or electronic funds transfer (assuming all are in good order), we reserve the right, subject to applicable laws, to restrict distribution of that contribution from your Account for up to seven calendar days after deposit. The Portfolios will be closed for wire purchases and redemptions on days when the Federal Reserve Wire System is closed.

Nonpayment. If a contribution is made by check or electronic funds transfer that does not clear, or if it is not received in a timely manner, the contribution may be canceled. You will be responsible for any losses or expenses incurred by the Portfolios or the College Investment Plan due to nonpayment. However, your obligation to cover the loss will be waived if you make payment in good order within 10 business days. We have the right to cancel any contribution due to nonpayment.

Options for Unused Contributions. Your Beneficiary may choose not to attend an Eligible Educational Institution or you may not use all the money in your Account. In either case, you may name a new Beneficiary as described in the Changing a Beneficiary, Transferring Assets to Another of Your Accounts section. The Beneficiary may not

GoTuition is a trademark of T. Rowe Price Group, Inc.

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be changed if the Account was funded with assets from an UGMA or UTMA account. If you do not wish to name a new Beneficiary, you may take a distribution of your Account assets. In this case, the IRS may treat your distribution as a Non-Qualified Distribution, subject to applicable taxes, including the Distribution Tax.

Confirmation of Account Establishment. After we receive your New Account Enrollment form in good order, you will be sent a confirmation. You have 120 days after receiving a confirmation to inform us if any information in the confirmation is incorrect. After 120 days, we may consider that information in the confirmation to be correct. If you do not fund your Account within 120 days of establishing it, we reserve the right to close the Account. If you choose to fund the Account after it has been closed, you may be required to complete another New Account Enrollment form.

Confirmation of Contributions. You will receive a confirmation (either by mail or, if you have elected to receive paperless delivery, electronically) after we receive a contribution to your Account, except for Automatic Monthly Contributions and payroll deductions. You have 120 days after receiving a confirmation to inform us if any information in the confirmation is incorrect. After 120 days, we may consider that information in the confirmation to be correct.

Investment InformationAssets Held in Trust. Your Account assets are held in the Trust. Your Account is held for your exclusive benefit and may not be transferred or used by Maryland 529, the College Investment Plan, the Board, the Trustee, the State, or T. Rowe Price for any purposes other than those of the Trust. For a complete copy of the Declaration, please call us.

Investment Policy. In conjunction with the Board’s investment advisor and T. Rowe Price, the Board has established an investment policy, including the number of Investment Options and the general character and composition of each Investment Option. Based on these guidelines, detailed asset allocations have been developed and Funds have been selected for each Portfolio. The investment advisor also assists the Board in reviewing the Investment Options.

Treatment of Dividends and Capital Gains. The Funds distribute dividends and capital gains to each Portfolio because they are required by the IRS to do so in order to maintain their tax status as regulated investment companies. Because the Portfolios are an offering through the Trust, they are not considered mutual Funds and are, therefore, not required to comply with the IRS distribution requirements applicable to regulated investment companies. Instead, each Portfolio (with the exception of the U.S. Treasury Money Market Portfolio) reinvests any dividends and capital gains received from the Funds. These reinvested amounts (as well as any losses) are reflected in each Portfolio as an increase or decrease to its NAV.

The U.S. Treasury Money Market Portfolio, by contrast, generally declares a dividend daily in order to maintain a stable NAV of $1.00.

Investment Direction and Control by Account HolderInvestment Selection. For each new contribution, you can select one or more of the Portfolios when you make your contribution. You should periodically assess and, if appropriate, adjust your investment selection with your own time horizon, risk tolerance, and investment objectives in mind.

Changing Portfolios. Once your Portfolio is selected for a particular contribution, the Code permits you to move money or transfer from one Portfolio to another twice per calendar year for the same Beneficiary.

Investment Options. You are required to make an investment selection when setting up an Account. You can choose to invest in one or both investment approaches (enrollment-based and fixed) at the time the Account is established and at the time each subsequent contribution is made.

Enrollment-Based Portfolios. With this approach, each of the eight Portfolios is targeted to an expected enrollment year of a Beneficiary. For example, Portfolios 2036 and 2039 are focused on stock investments for growth and designed for Beneficiaries expected to begin using their investment for Qualified Education Expenses in 2036 and 2039, respectively. When a Portfolio is within 15 years of moving into the Portfolio for Education Today, the Portfolio’s assets will typically be shifted every quarter to more conservative allocations through increased exposure to fixed income securities. Assets are automatically moved to the Portfolio for Education Today in the year indicated in the name of the Portfolio. For example, Portfolio 2021 will move to the Portfolio for Education Today in June 2021. You may also elect a more aggressive or conservative approach by designating a Portfolio that differs from the one corresponding to the Beneficiary’s expected year of enrollment. These Portfolios also seek to cushion the effects of volatility in U.S. equity markets by diversifying in international equity markets. However, diversification cannot assure a profit or protect against loss in a declining market. Although enrollment-based Portfolios are designed to allow for automatic moves to more conservative investments as the Portfolio approaches the enrollment year referenced in the Portfolio’s name, there is no guarantee that your enrollment-based Portfolio will meet your Beneficiary’s anticipated education expenses. You should monitor your investments on a regular basis to ensure that they are consistent with your education savings goals.

Fixed Portfolios. You can choose one or more of the nine fixed Portfolios, whose neutral asset allocations remain constant. These Portfolios generally invest in certain broad asset classes of stock, bond, and/or money market Funds, or a combination of these asset classes. The fixed Portfolios that invest primarily in stock Funds are the Equity Index 500 Portfolio, the Equity Portfolio, the Extended Equity Market Index Portfolio, and the Global Equity Market Index Portfolio. The fixed Portfolio that invests in a mix of approximately 60% stock Funds and 40% bond Funds is the Balanced Portfolio. The fixed Portfolios that invest primarily in bond Funds are the Bond and Income Portfolio, the

We offer two types of Investment Options: Enrollment-Based Portfolios and Fixed Portfolios.

15888. 4MD. GRAD

Inflation Focused Bond Portfolio, and the U.S. Bond Enhanced Index Portfolio. The fixed Portfolio that invests primarily in money markets is the U.S. Treasury Money Market Portfolio.

Fixed Income Allocation for Enrollment-Based Portfolios. When an enrollment-based Portfolio is within five years of being moved into the Portfolio for Education Today, the fixed income component will become more conservative, and we will begin transitioning its allocation to bonds from the Spectrum Income Fund to the Short-Term Bond Fund.

Portfolio Changes. The asset allocations, policies, objectives, and guidelines of the Portfolios may be changed from time to time by the Board, as may the selection of Funds or other investments in which each Portfolio invests.

Variances to Neutral Asset Allocations. The allocations shown on the following pages are referred to as Neutral Allocations because they do not reflect any tactical decisions by T. Rowe Price to overweight or underweight a particular asset class or sector based on market outlook. T. Rowe Price assesses market and economic conditions and periodically sets Target Allocations for certain Portfolios that vary from the then-current Neutral Allocations (which are updated on a regular basis and may vary from the Neutral Allocations presented in this Plan Disclosure Statement).

For a Portfolio that invests in more than one underlying Fund, there may be variances of up to 8% of the Neutral Allocations to the broad asset classes (e.g., stocks and bonds) or any underlying Fund for the Portfolios listed on the following pages.

This variance may be applied to any combination of Funds within a broad asset class or any single Fund that has a Neutral Allocation of over 10% of a Portfolio. For example, the Neutral Allocation of 17.11% for the T. Rowe Price Equity Index 500 Fund in the Portfolio for Education Today as of October 1, 2019, may decrease to 9.11% or increase to 25.11% of the Portfolio. Similarly, the Neutral Allocation of 60% stocks in the Balanced Portfolio may decrease to 52% or increase to 68%.

The permissible variance is lowered to 6% for any single Fund with a Neutral Allocation of 10% or less of a Portfolio. In that case, for example, the 7.32% Neutral Allocation for the T. Rowe Price Small-Cap Stock Fund in the Equity Portfolio could only decrease to 1.32% or increase to 13.32%.

None of the Portfolios (other than the U.S. Treasury Money Market Portfolio) maintain a Neutral Allocation to money market Funds. However, a Target Allocation to money market Funds may at times be established for the enrollment-based Portfolios and the Balanced Portfolio based on tactical decisions by T. Rowe Price with regard to market outlook. Any allocations to money markets would be achieved through an investment in the T. Rowe Price U.S. Treasury Money Fund.

Cash Reserve Positions. The underlying Funds focus on different areas of the stock and bond markets in accordance with their investment programs. However, each Fund typically maintains a portion of its assets in reserves, such as cash and money market securities. The reserve position provides flexibility in meeting redemptions, managing cash flows, and paying expenses and may serve as a short-term defense during periods of unusual market volatility.

PortfoliosEnrollment-Based Portfolios. The following Neutral Allocations are depicted for the fourth quarter of 2019. They are rounded to the nearest one-hundredth of a percent and, therefore, may not total exactly 100%. Graphical depictions of the allocations to the broad asset classes for each Portfolio may also be rounded. You should monitor your investments on a regular basis to ensure that they are consistent with your savings goals. For the most recent allocations, please visit our website or call us.

Portfolio 2039 – This Portfolio seeks long-term capital appreciation by investing in Funds focused predominantly on equity markets. The strategy is based on the understanding that the volatility associated with equity markets can be accompanied by the greatest potential for long-term capital appreciation. Due to the time horizon until expected enrollment in school, this Portfolio will have the same allocation as Portfolio 2036, although its allocation will typically begin to shift each quarter three years later than Portfolio 2036.

Portfolio 2039

Neutral Asset AllocationT. Rowe Price Funds Focusing on Equities (Stocks): Equity Index 500 Fund 30.70%Blue Chip Growth Fund 10.24%Value Fund 10.24%International Stock Fund 8.08%International Value Equity Fund 8.08%Overseas Stock Fund 8.08%Small-Cap Stock Fund 7.32%Real Assets Fund 5.00%Emerging Markets Stock Fund 4.28%Mid-Cap Growth Fund 3.99%Mid-Cap Value Fund 3.99%

T. Rowe Price Funds Focusing on Fixed Income (Bonds): Limited Duration Inflation Focused Bond Fund 0.00%Short-Term Bond Fund 0.00%Spectrum Income Fund 0.00%

T. Rowe Price Funds Focusing on Money Markets: U.S. Treasury Money Fund 0.00%

100%

Stocks

16 MARYLAND 529.COM

Portfolio 2036 – This Portfolio seeks long-term capital appreciation by investing in Funds focused predominantly on equity markets. The strategy is based on the understanding that the volatility associated with equity markets may be accompanied by the greatest potential for long-term capital appreciation.

Portfolio 2036

Neutral Asset AllocationT. Rowe Price Funds Focusing on Equities (Stocks): Equity Index 500 Fund 30.70%Blue Chip Growth Fund 10.24%Value Fund 10.24%International Stock Fund 8.08%International Value Equity Fund 8.08%Overseas Stock Fund 8.08%Small-Cap Stock Fund 7.32%Real Assets Fund 5.00%Emerging Markets Stock Fund 4.28%Mid-Cap Growth Fund 3.99%Mid-Cap Value Fund 3.99%

T. Rowe Price Funds Focusing on Fixed Income (Bonds): Limited Duration Inflation Focused Bond Fund 0.00%Short-Term Bond Fund 0.00%Spectrum Income Fund 0.00%

T. Rowe Price Funds Focusing on Money Markets: U.S. Treasury Money Fund 0.00%

Portfolio 2033 – This Portfolio seeks long-term capital appreciation by investing in Funds focused predominantly on equity markets with some allocation to fixed income. The strategy is based on the understanding that the volatility associated with equity markets may be accompanied by the greatest potential for long-term capital appreciation.

Portfolio 2033

Neutral Asset AllocationT. Rowe Price Funds Focusing on Equities (Stocks): Equity Index 500 Fund 28.42%Blue Chip Growth Fund 9.47%Value Fund 9.47%International Stock Fund 7.47%International Value Equity Fund 7.47%Overseas Stock Fund 7.47%Small-Cap Stock Fund 6.77%Real Assets Fund 4.63%Emerging Markets Stock Fund 3.95%Mid-Cap Growth Fund 3.69%Mid-Cap Value Fund 3.69%

T. Rowe Price Funds Focusing on Fixed Income (Bonds): Spectrum Income Fund 7.50%Limited Duration Inflation Focused Bond Fund 0.00%Short-Term Bond Fund 0.00%

T. Rowe Price Funds Focusing on Money Markets: U.S. Treasury Money Fund 0.00%

Portfolio 2030 – This Portfolio seeks long-term capital appreciation by investing significantly in Funds focused on equity markets, with some exposure to fixed income. The strategy is based on the understanding that the volatility associated with equity markets may be accompanied by the greatest potential for long-term capital appreciation.

Portfolio 2030

Neutral Asset AllocationT. Rowe Price Funds Focusing on Equities (Stocks): Equity Index 500 Fund 23.80%Blue Chip Growth Fund 7.94%Value Fund 7.94%International Stock Fund 6.26%International Value Equity Fund 6.26%Overseas Stock Fund 6.26%Small-Cap Stock Fund 5.67%Real Assets Fund 3.88%Emerging Markets Stock Fund 3.31%Mid-Cap Growth Fund 3.09%Mid-Cap Value Fund 3.09%

T. Rowe Price Funds Focusing on Fixed Income (Bonds): Spectrum Income Fund 22.50%Limited Duration Inflation Focused Bond Fund 0.00%Short-Term Bond Fund 0.00%

T. Rowe Price Funds Focusing on Money Markets: U.S. Treasury Money Fund 0.00%

Portfolio 2027 – This Portfolio seeks capital appreciation and income by investing in Funds focused on both stocks and fixed income instruments, with a higher exposure to stocks. The Portfolio invests in both domestic and international equity markets. This mix of Funds offers reduced exposure to equities while diversifying in fixed income markets to reduce the risk and volatility typically associated with equity markets.

Portfolio 2027

Neutral Asset AllocationT. Rowe Price Funds Focusing on Equities (Stocks): Equity Index 500 Fund 18.97%Blue Chip Growth Fund 6.32%Value Fund 6.32%International Stock Fund 4.99%International Value Equity Fund 4.99%Overseas Stock Fund 4.99%Small-Cap Stock Fund 4.52%Real Assets Fund 3.09%Emerging Markets Stock Fund 2.64%Mid-Cap Growth Fund 2.46%Mid-Cap Value Fund 2.46%

T. Rowe Price Funds Focusing on Fixed Income (Bonds): Spectrum Income Fund 38.25%Limited Duration Inflation Focused Bond Fund 0.00%Short-Term Bond Fund 0.00%

T. Rowe Price Funds Focusing on Money Markets: U.S. Treasury Money Fund 0.00%

38.25%

61.75%

StocksBonds

100%

Stocks

StocksBonds

7.5%

92.5%

StocksBonds

22.5%

77.5%

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Portfolio 2024 – This balanced Portfolio seeks capital appreciation and income by investing in an approximately equal mix of stocks and fixed income instruments, with a higher exposure to bonds. The Portfolio invests in both domestic and international equity markets. This mix of Funds offers reduced exposure to equities while diversifying in fixed income markets to reduce the risk and volatility typically associated with equity markets.

Portfolio 2024

Neutral Asset AllocationT. Rowe Price Funds Focusing on Fixed Income (Bonds): Spectrum Income Fund 46.00%Limited Duration Inflation Focused Bond Fund 4.25%Short-Term Bond Fund 4.00%

T. Rowe Price Funds Focusing on Equities (Stocks): Equity Index 500 Fund 19.95%Blue Chip Growth Fund 3.88%Value Fund 3.88%International Stock Fund 3.11%International Value Equity Fund 3.11%Overseas Stock Fund 3.11%Small-Cap Stock Fund 2.54%Real Assets Fund 2.29%Mid-Cap Growth Fund 1.39%Mid-Cap Value Fund 1.39%Emerging Markets Stock Fund 1.10%

T. Rowe Price Funds Focusing on Money Markets:U.S. Treasury Money Fund 0.00%

Portfolio 2021 – This Portfolio seeks income by investing primarily in fixed income Funds with some exposure to stocks. For diversification and some capital appreciation, the Portfolio may also invest a small component in international equity markets. This mix of Funds limits the exposure to equities while diversifying in fixed income markets in an effort to reduce the risk and volatility typically associated with equity markets.

Portfolio 2021

Neutral Asset AllocationT. Rowe Price Funds Focusing on Fixed Income (Bonds): Short-Term Bond Fund 28.00%Limited Duration Inflation Focused Bond Fund 26.50%Spectrum Income Fund 17.00%

T. Rowe Price Funds Focusing on Equities (Stocks): Equity Index 500 Fund 22.33%Real Assets Fund 1.43%International Stock Fund 1.07%International Value Equity Fund 1.07%Overseas Stock Fund 1.07%Blue Chip Growth Fund 0.47%Value Fund 0.47%Small-Cap Stock Fund 0.26%Mid-Cap Growth Fund 0.14%Mid-Cap Value Fund 0.14%Emerging Markets Stock Fund 0.05%

T. Rowe Price Funds Focusing on Money Markets: U.S. Treasury Money Fund 0.00%

Portfolio for Education Today* – Emphasizing a mix of high-quality fixed income Funds, this Portfolio also has a modest allocation to equity Funds. The allocations reflect a lower-risk investment approach. Designed with a more conservative strategy, this Portfolio seeks stability of principal by minimizing the risk associated with equity markets. This Portfolio is designed for Beneficiaries who are already enrolled or about to enroll in school. It maintains approximately a 20% allocation to equity Funds and is not guaranteed to preserve principal. There is a small exposure to international stocks as well. The objective is to conserve principal while generating income at a time when the Account Holder may be withdrawing from an Account for Qualified Education Expenses. However, you could experience losses, including losses near, at, or after the enrollment date. There is also no guarantee that the Portfolio will provide adequate income at and throughout enrollment in college or other schools.

Portfolio for Education Today*

Neutral Asset AllocationT. Rowe Price Funds Focusing on Fixed Income (Bonds): Limited Duration Inflation Focused Bond Fund 40.00%Short-Term Bond Fund 40.00%

T. Rowe Price Funds Focusing on Equities (Stocks):Equity Index 500 Fund 17.11%International Stock Fund 0.63%International Value Equity Fund 0.63%Overseas Stock Fund 0.63%Real Assets Fund 1.00%

T. Rowe Price Funds Focusing on Money Markets: U.S. Treasury Money Fund 0.00%

*Effective November 15, 2019, Portfolio for College was renamed to Portfolio for Education Today to more accurately describe the Portfolio’s design for Beneficiaries who are already enrolled or about to enroll in school. This is a name change only.

54.25%

45.75%

StocksBonds

71.5%

28.5%

StocksBonds

Stocks

Bonds

20%

80%

18 MARYLAND 529.COM

Fixed Portfolios. The following Neutral Allocations to the broad asset classes generally do not change over time. However, the Neutral Allocations to particular underlying Funds are rounded to the nearest one-hundredth of a percent and, therefore, may not total exactly 100%. The Fixed Portfolios that invest in more than one underlying Fund may vary within the limits described under Variances to Neutral Asset Allocations.

Equity Index 500 Portfolio – This Portfolio invests in the T. Rowe Price Equity Index 500 Fund, which is a passively managed index Fund seeking to match the performance of the S&P 500 Index, a well-known index consisting primarily of large-cap U.S. stocks. Index Funds seek to match the investment return of a particular benchmark index and generally do not reallocate their holdings based on changes in market conditions or outlook. As a result, the expenses of passively managed index Funds are typically lower than the expenses of actively managed Funds. This Portfolio does not become more conservatively allocated over time and is designed for Account Holders who want a Portfolio composed of a passively managed U.S. large-cap equity mutual Fund. This strategy is based on the understanding that the volatility associated with index investing and the U.S. large-cap equity markets can be accompanied by the potential for long-term capital appreciation.

Equity Index 500 Portfolio

Neutral Asset AllocationT. Rowe Price Funds Focusing on Equities (Stocks):Equity Index 500 Fund 100.00%

Equity Portfolio – Emphasizing long-term capital appreciation, this equity Portfolio invests in a broad range of Funds focused on both domestic and international equity markets. It is designed for Account Holders who want a broadly diversified Portfolio composed primarily of actively managed equity mutual Funds that does not become more conservative over time. Because this Portfolio invests in many underlying Funds, it will have partial exposure to the risks of different areas of the market. This strategy is based on the understanding that the volatility associated with equity markets may be accompanied by the greatest potential for long-term capital appreciation.

Equity Portfolio

Neutral Asset AllocationT. Rowe Price Funds Focusing on Equities (Stocks):Equity Index 500 Fund 30.70%Blue Chip Growth Fund 10.24%Value Fund 10.24%International Stock Fund 8.08%International Value Equity Fund 8.08%Overseas Stock Fund 8.08%Small-Cap Stock Fund 7.32%Real Assets Fund 5.00%Emerging Markets Stock Fund 4.28%Mid-Cap Growth Fund 3.99%Mid-Cap Value Fund 3.99%

T. Rowe Price Funds Focusing on Money Markets: U.S. Treasury Money Fund 0.00%

Extended Equity Market Index Portfolio – This Portfolio invests in the T. Rowe Price Extended Equity Market Index Fund, which is a passively managed index Fund seeking to track the performance of the small- and mid-cap U.S. stock market. Index Funds seek to match the investment return of a particular benchmark index and generally do not reallocate their holdings based on changes in market conditions or outlook. As a result, the expenses of passively managed index Funds are typically lower than the expenses of actively managed Funds. This Portfolio does not become more conservatively allocated over time and is designed for Account Holders who want a Portfolio composed of a passively managed U.S. equity mutual Fund holding equities other than those listed on the S&P 500 Index. This strategy is based on the understanding that the volatility associated with index investing and the U.S. small- and mid-cap equity markets can be accompanied by the potential for long-term capital appreciation.

Extended Equity Market Index Portfolio

Neutral Asset AllocationT. Rowe Price Funds Focusing on Equities (Stocks):Extended Equity Market Index Fund 100.00%

100%

Stocks

100%

Stocks

The S&P 500 Index is a product of S&P Dow Jones Indices LLC (“SPDJI”), and has been licensed for use by T. Rowe Price. “Standard & Poor’s®”, “S&P®”, and “S&P 500®” are registered trademarks of Dow Jones Trademark Holdings LLC; these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes to T. Rowe Price.

100%

Stocks

F5M1MDNA 201911-990037 Questions? Maryland529.com | 888.4MD.GRAD (463.4723) Page 1 of 3

Maryland Senator Edward J. Kasemeyer College Investment Plan New Account Enrollment

3 Custodian or Trustee (if applicable)

A Custodian is required if (1) the Account Holder is a minor or (2) the Account is being funded from an UGMA/UTMA. A Trustee is required if the Account Holder is a trust. Statements will be mailed to the Custodian or Trustee address. If an address is not provided below, the address of the Account Holder will be used.

☐ Check if the Account is funded from an UGMA/UTMA.

Name* Citizenship:* ☐ U.S. Citizen ☐ U.S. Resident Alien

Social Security/Tax ID Number* Date of Birth (mm/dd/yyyy)*

Residential Address (cannot be a P.O. Box)*

City* State* ZIP Code*

Day Phone Evening Phone

Email Address

Mailing Address (if different from residential)

City State ZIP Code

☐ For more authorized persons or trustees, check this box and attach a separate page with the above information.

• For a trust as the Account Holder, attach a copy of the trust agreement pages with the trust name and date, the Trustee(s) name(s), and the signature page.

• For a corporation or other entity as the Account Holder, attach a copy of the corporate resolution, bylaws, or charter that lists the person(s) authorized to act for the organization.

1 Account HolderThe Account Holder is generally the person/entity authorized to act on the Account, such as an individual, partnership, trust, estate or association.

Name* Citizenship:* ☐ U.S. Citizen ☐ U.S. Resident Alien

Social Security/Tax ID Number* Date of Birth (mm/dd/yyyy)*

Residential Address (cannot be a P.O. Box)*

City* State* ZIP Code*

Day Phone Evening Phone

Email Address

Mailing Address (if different from residential)

City State ZIP Code

Go Paperless. Going paperless means statements and confirmations (and the Plan Disclosure Statements and related supplements, when available) are available online for your convenience.☐ Check here, and we will send an email with details about

completing the set up process online.

2 Beneficiary (Student) A Beneficiary is the person who is expected to receive the benefit of the Account. If an address is not provided below, the address of the Account Holder will be used.

Name* Citizenship: ☐ U.S. Citizen ☐ U.S. Resident Alien

Social Security/Tax ID Number* Date of Birth (mm/dd/yyyy)*

Address .

City State ZIP Code

✓ Use this form to:• Open an Account.

Visit Maryland529.com to open an Account online. This paper clip indicates you may need to attach documentation.

Mail to:Maryland College Investment Plan P.O. Box 17479Baltimore, MD 21297-1479

Express delivery only:Maryland College Investment Plan Mail Code 174794515 Painters Mill RoadOwings Mills, MD 21117-4903

*NOTE: We are required to have this information in order to open your Account.

Capitalized terms not otherwise defined on this form have the meanings set forth in the Plan Disclosure Statement.

F5M1MDNA 201911-990037 Questions? Maryland529.com | 888.4MD.GRAD (463.4723) Page 2 of 3

4 Account Holder's Successor (Recommended)

Name an Account Holder's Successor who will replace the Account Holder if he/she dies or becomes legally incapacitated. If you choose to name an Account Holder's Successor, you must provide both their full name and date of birth.

Name

Date of Birth (mm/dd/yyyy)

5 Investment Portfolio Selection*Investment Portfolio Selection (required to process). For information on the Investment Portfolios, refer to the Plan Disclosure Statement or visit the Plan's Investment Options page at www.Maryland529.com. NOTE: Portfolio Allocations should add to 100%.

Investment Portfolio

%

Investment Portfolio

%

☐ For more portfolios, check this box and attach a separate page.

6 Contribution Method(s)

Check all that apply:☐ Check payable to Maryland College Investment Plan. ☐ Transfer from an existing account due to Account Holder

change. Enclose an Account Holder Change form.

Account Holder Name Account Number

☐ Direct rollover from another 529 college savings plan. Enclose a completed Rollover form.

☐ Indirect rollover of a distribution from a 529 Plan, a Coverdell Education Savings Account (ESA), or qualified U.S. Savings Bonds within the past 60 days. NOTE: You must provide the earnings applicable to the rollover and the principal. If left blank, the entire contribution will be treated as earnings in accordance with IRS requirements.

Earnings $

Principal $

Total Rollover $

Enclose a copy of your most recent statement or, for U.S. Savings Bonds, Form 1099-INT.

☐ Automatic Monthly Contributions (AMC). This service allows you to automatically contribute via the bank account provided on this form to the portfolio(s) listed below.

Investment Portfolio Amount1 Date(s)2

$ &

$ &

☐ For more portfolios, check this box and attach a separate page. 1Note: The amount to contribute for each date indicated.

2 Note: You can select up to two dates each month. If blank, the AMC will occur on the first business day of the month. If the date(s) selected falls on a day when the New York Stock Exchange is scheduled to be closed for trading (for example, weekends and certain U.S. national holidays), the AMC will occur on the next available business day.

☐ Payroll deduction. Verify that your employer participates in payroll deduction. We will mail you instructions for your employer.

☐ Maryland state employees payroll deduction. Complete the Maryland State Payroll Deduction form.

☐ Maryland State Contribution Program. Complete the Maryland State Contribution Application form.

NOTE: You are not required to contribute when open-ing your account if you apply for the State Contribution Program; however, if you are eligible for the program you must contribute the minimum amount between January 1 and November 1 (based on your reported income). For more information please go to www.Maryland529.com/Save4College.

7 Bank Information (Optional)Complete this section to have electronic funds transfer (EFT) service. This service allows you to move money between your bank account and your Account(s). Allow up to 10 days for initial setup.

Enclose a voided check or preprinted savings deposit slip. We cannot accept starter checks. The initial purchase check will be used to add banking if a voided check or preprinted savings deposit slip is not provided and a selection is made below. ☐ Checking account or ☐ Savings account

NOTE: If the Account Holder or Custodian is not an owner of the bank account, the bank account owner must sign in Section 10B.

8 Third-Party Statements (Optional)

Send copies of my quarterly statements to the name and address below:

Name

Address

City State ZIP Code

9 Rights to Account Information (Optional)

Name a person who can contact us to discuss your account(s). Note: This person will not have authority to transact on the account(s). The party named will have rights to account information on all identically registered accounts unless you attach specific instructions.

*NOTE: We are required to have this information in order to open your Account.

F5M1MDNA 201911-990037 Questions? Maryland529.com | 888.4MD.GRAD (463.4723) Page 3 of 3

Name

Address

City State ZIP Code

☐ Third-Party Statements. Send copies of my quarterly statements to the name and address above.

10 Signature(s)

10A Account Holder

By signing this form, I understand and hereby certify that:• The information in this form is accurate. As described in

the College Investment Plan Disclosure Statement, I agree to hold harmless Maryland 529, the Trust, the Trustee, and T. Rowe Price for any losses arising out of any misrepre-sentations made by me or breach of acknowledgments contained in this form.

• I have received and agree to the terms set forth in the College Investment Plan Disclosure Statement, and will retain a copy for my records. I understand that Maryland 529, from time to time, may amend the Disclosure Statement, and I understand and agree that I will be subject to the terms of those amendments. I also under-stand that the Trustee chooses the Program Manager and that the Program Manager is subject to change.

• I am a U.S. citizen or a U.S. resident alien and have a U.S. address, and my Beneficiary is either a U.S. citizen or a U.S. resident alien.

• The Trust and T. Rowe Price will use the information in this form to verify my identity. If, after making reasonable efforts, the Trust and T. Rowe Price are unable to verify my identity, they are authorized to take any action permit-ted by law, including closing my Account and redeeming my Account at the net asset value calculated the day the Account is closed.

• If I am the Custodian executing this form on behalf of a minor Account Holder, I am of legal age in my state of residence and am legally authorized to act on behalf of the Account Holder.

• I authorize the Trust and T. Rowe Price and their agents and their affiliates to act on instructions believed to be genuine, and from me, for any service authorized in this form, including telephone/computer services. T. Rowe Price uses procedures designed to verify the authenticity of the Account Holder or Custodian. If these procedures are followed, Maryland 529, the Trust, and T. Rowe Price will not be liable for any loss that may result from acting on unauthorized instructions. I understand that anyone who can properly identify my Account(s) can make telephone/computer transactions on my behalf. I understand that receiving reimbursement for unauthorized activity as part of the T. Rowe Price Account Protection Program requires me to meet the eligibility terms of the Program, including following certain security best practices.

• I agree that computer/phone exchange and distribution

services will be activated automatically when my account is opened. If I do not want these services, I will contact T. Rowe Price to terminate these services.

• By selecting the EFT service on this form, I hereby autho-rize the Trust and T. Rowe Price to initiate credit and debit entries to the account at the financial institution indicated (on the enclosed voided check or savings deposit slip) and for the financial institution to credit or debit such account through the Automated Clearing House (ACH) network, subject to the rules of the financial institution, ACH, and T. Rowe Price. The Trust and T. Rowe Price may correct any transaction errors with a debit or credit to my financial insti-tution account and/or College Investment Plan Account. This authorization, including any credit or debit entries initi-ated thereunder, is in full force and effect until I notify the College Investment Plan of its revocation by telephone or in writing and it has had sufficient time to act on it.

Mailing Opt-Outs:☐ Marketing information: We may use information about

you in the future to identify and alert you to other college investment plans or T. Rowe Price savings or investment programs that might interest you. If you do not wish to receive this information, check the box.

☐ Mail multiple copies: We will send only one copy of the Plan Disclosure Statement and other documents (except Account confirmations, statements, and tax forms) to all Account Holders residing at the same address. If you wish to receive multiple copies of these documents, check the box.

By having the plan accept delivery of this form, executed by me and in good order, the Trust acknowledges acceptance of the form, binding the Trust and me in accordance with its terms.

SIGNATURE AND DATE REQUIRED

Account Holder, Trustee, or Custodian (if Account Holder is a minor)

X

Date (mm/dd/yyyy)

Print Name

Co-trustee (if applicable)

X

Date (mm/dd/yyyy)

Print Name

10B Bank Account Owner

If the Account Holder or Custodian is not an owner of the bank account, the bank account owner must sign here to authorize adding the bank information. EFT services will not be added without the required signature.

NOTE: Third-party bank accounts can only be used for contributions made with AMC and not for distributions.

SIGNATURE AND DATE REQUIRED

Bank Account Owner Date (mm/dd/yyyy)

X

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19888. 4MD. GRAD

Global Equity Market Index Portfolio – This Portfolio invests in the T. Rowe Price Total Equity Market Index Fund, which is a passively managed index Fund seeking to track the performance of the entire U.S. stock market, and the T. Rowe Price International Equity Index Fund, which is a passively managed index Fund seeking to track the performance of stocks in developed non-U.S. markets. Index Funds seek to match the investment return of a particular benchmark index and generally do not reallocate their holdings based on changes in market conditions or outlook. As a result, the expenses of passively managed index Funds are typically lower than the expenses of actively managed Funds. This Portfolio does not generally become more conservatively allocated over time and is designed for Account Holders who want a Portfolio composed of passively managed equity mutual Funds. This strategy is based on the understanding that the volatility associated with index investing and the global equity markets may be accompanied by the potential for long-term capital appreciation.

Global Equity Market Index Portfolio

Neutral Asset AllocationT. Rowe Price Funds Focusing on Equities (Stocks):Total Equity Market Index Fund 70.00%International Equity Index Fund 30.00%

Balanced Portfolio – This moderately aggressive Portfolio seeks capital appreciation and income and focuses on a mix of approximately 60% of its holdings invested in equity markets, including exposure to international stocks, while seeking diversification through approximately 40% of its holdings allocated to fixed income. This strategy is based on accepting the risks associated with stocks, which have the potential to provide high returns, and seeking to balance the effects of volatility through diversification in fixed income securities.

Balanced Portfolio

Neutral Asset AllocationT. Rowe Price Funds Focusing on Equities (Stocks):Equity Index 500 Fund 18.42%Blue Chip Growth Fund 6.14%Value Fund 6.14%International Stock Fund 4.85%International Value Equity Fund 4.85%Overseas Stock Fund 4.85%Small-Cap Stock Fund 4.40%Real Assets Fund 3.00%Emerging Markets Stock Fund 2.57%Mid-Cap Growth Fund 2.39%Mid-Cap Value Fund 2.39%

T. Rowe Price Funds Focusing on Fixed Income (Bonds):New Income Fund 28.00%Emerging Markets Bond Fund 4.00%High Yield Fund 4.00%International Bond Fund 4.00%

T. Rowe Price Funds Focusing on Money Markets: U.S. Treasury Money Fund 0.00%

Bond and Income Portfolio – This Portfolio’s primary objective is to seek a high level of current income consistent with moderate price fluctuations by investing exclusively in the T. Rowe Price Spectrum Income Fund, which invests in a variety of domestic and international bond Funds, a money market Fund, and an income-oriented stock Fund. The Fund seeks to maintain broad exposure to several markets in an attempt to reduce the impact of markets that are declining and to benefit from good performance in particular market segments over time. The Portfolio is subject to interest rate risk, credit risk, asset allocation risk, liquidity risk, international investing risk, emerging markets risk, and dividend-paying stock risk. The strategy is based on a lower-risk investment approach that seeks to conserve principal and generate a reasonable level of return while minimizing the risks associated with equity markets.

Bond and Income Portfolio

Neutral Asset AllocationT. Rowe Price Funds Focusing on Fixed Income (Bonds):Spectrum Income Fund 100.00%

Inflation Focused Bond Portfolio – This Portfolio seeks a level of income that is consistent with the current rate of inflation by investing exclusively in the T. Rowe Price Limited Duration Inflation Focused Bond Fund. The Fund invests in a diversified Portfolio of short- and intermediate-term investment-grade inflation-linked securities, as well as corporate, government, mortgage-backed, and asset-backed securities.

Inflation Focused Bond Portfolio

Neutral Asset Allocation T. Rowe Price Funds Focusing on Fixed Income (Bonds):Limited Duration Inflation Focused Bond Fund 100.00%

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While certain Portfolios seek to cushion the effects of volatility in U.S. equity markets by diversifying in foreign markets and/or fixed income markets, diversification cannot assure a profit or protect against loss in a declining market.

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U.S. Bond Enhanced Index Portfolio – This Portfolio invests in the T. Rowe Price U.S. Bond Enhanced Index Fund, which is a passively managed index Fund seeking to match or incrementally exceed the performance of the U.S. investment-grade bond market. Index Funds seek to match the investment return of a particular benchmark index and generally do not reallocate their holdings based on changes in market conditions or outlook. As a result, the expenses of passively managed index Funds are typically lower than the expenses of actively managed Funds. This Portfolio is designed for Account Holders who want a Portfolio composed of a passively managed bond mutual Fund and can accept the volatility associated with index investing and U.S. investment-grade bonds.

U.S. Bond Enhanced Index Portfolio

Neutral Asset AllocationT. Rowe Price Funds Focusing on Fixed Income (Bonds):U.S. Bond Enhanced Index Fund 100.00%

U.S. Treasury Money Market Portfolio – This Portfolio seeks to preserve investment principal, while providing the highest available current income, by investing exclusively in the T. Rowe Price U.S. Treasury Money Fund, which is a money market Fund managed to provide a stable share price of $1.00 by investing in short-term securities backed by the U.S. government and repurchase agreements thereon. You could lose money by investing in this Portfolio. Although the Money Market Portfolio seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in this Portfolio. Neither the Program Manager nor the underlying Fund’s sponsor has any legal obligation to provide financial support to the underlying Fund, and you should not expect that either the Program Manager or the Fund sponsor will provide financial support to the Portfolio or the underlying Fund at any time.

U.S. Treasury Money Market Portfolio

Neutral Asset AllocationT. Rowe Price Funds Focusing on Money Markets:U.S. Treasury Money Fund 100.00%

The Underlying Fund CharacteristicsInformation About Underlying Funds. The Portfolios in the College Investment Plan are more likely to meet their goals if the underlying Funds achieve their stated investment objectives. These investment objectives are summarized in this section. You should also review carefully the information contained in each Fund’s prospectus about these Funds and the types of risks they represent prior to investing. Request a current prospectus for any

Fund, which includes investment objectives, risks, Fees and expenses, and other information that you should read and consider carefully before investing, by visiting troweprice.com or calling us. See discussion of General Risks and Investment Risks.

T. Rowe Price Funds Focusing on Equities (Stock Funds)Blue Chip Growth Fund seeks to provide long-term capital growth. Income is a secondary objective. The Fund invests primarily in the common stocks of large and medium-sized blue chip companies that have the potential for above-average earnings growth and are well established in their respective industries.

Emerging Markets Stock Fund seeks long-term growth of capital through investments primarily in the common stocks of companies located (or with primary operations) in emerging markets. The Fund normally invests at least 80% of net assets in emerging market companies in Latin America, Asia, Europe, Africa, and the Middle East. Stock selection reflects a growth style.

Equity Index 500 Fund seeks to track the performance of the Standard & Poor’s 500® Stock Index.* The S&P 500 is made up of primarily large-capitalization companies that represent a broad spectrum of the U.S. economy and a substantial part of the U.S. stock market’s total capitalization. The Fund uses a full replication strategy and invests substantially all of its assets in all of the stocks in the S&P 500 Index. The Fund attempts to maintain holdings of each stock in proportion to its weight in the index.

Extended Equity Market Index Fund seeks to track the performance of the S&P Completion Index®,* which is an index consisting primarily of small- and mid-capitalization U.S. stocks and generally includes those U.S. stocks that are not included in the S&P 500 Index. The Fund uses a sampling strategy, investing substantially all of its assets in a group of stocks representative of the S&P Completion Index. The Fund does not attempt to fully replicate the index by owning each of the stocks in it.

International Equity Index Fund seeks to provide long-term capital growth. The Fund attempts to track the performance of stocks in developed non-U.S. markets by seeking to match the performance of its benchmark index, the FTSE® International Limited (FTSE) All World Developed ex North America Index. The index’s major markets include Japan, the United Kingdom, France, Germany, Switzerland, and other developed countries in Europe and the Pacific Rim. The Fund uses a full replication strategy and invests substantially all of its assets in the stocks represented in the FTSE All World Developed ex North America Index.** The Fund attempts to maintain holdings of each stock in proportion to its weight in the index.

International Value Equity Fund seeks long-term growth of capital and current income. The Fund will normally invest at least 80% of its net assets in equity securities and 65% of its total assets in non-U.S. stocks, with an emphasis on large-capitalization stocks that have a strong track record of paying dividends or that are believed to be undervalued. Security selection reflects a value orientation.

International Stock Fund seeks long-term growth of capital through investments primarily in the common stocks of established, non-U.S. companies. The Fund expects to primarily invest in stocks outside of the U.S. and to diversify broadly among developed and emerging countries throughout the world. While the Fund invests with an awareness of the global

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economic backdrop and the outlook for industry sectors and individual countries, bottom-up stock selection is the focus of our decision-making. Security selection reflects a growth style.

Mid-Cap Growth Fund seeks to provide long-term capital appreciation by investing primarily in U.S. mid-cap stocks offering the potential for above-average earnings growth. The Fund normally invests at least 80% of its net assets in a diversified Portfolio of common stocks of mid-cap companies whose earnings T. Rowe Price expects to grow at a faster rate than the average company. The Fund defines mid-cap companies as those whose market capitalization falls within the range of either the S&P Mid-Cap 400 Index or the Russell Mid-Cap Growth Index.***

Mid-Cap Value Fund seeks to provide long-term capital appreciation by investing primarily in U.S. mid-size companies believed to be undervalued. The Fund normally invests at least 80% of net assets in companies whose market capitalization falls within the range of companies in the S&P Mid-Cap 400 Index or the Russell Mid-Cap Value Index.***

The Fund follows a value approach, seeking to identify companies whose stock prices do not appear to reflect their underlying values.

Overseas Stock Fund seeks long-term growth of capital through investments in the common stocks of non-U.S. companies. The Fund expects to invest significantly outside the U.S. and to diversify broadly among developed and, to a lesser extent, emerging countries throughout the world. The Fund normally invests at least 80% of its net assets in non-U.S. stocks and at least 65% of its net assets in stocks of large-cap companies.

Real Assets Fund seeks to provide long-term growth of capital. The Fund normally invests at least 80% of net assets in “real assets” and securities of companies that derive at least 50% of their profits or revenues from, or commit at least 50% of assets to, real assets and activities related to real assets. The Fund broadly defines real assets as any assets that have physical properties, such as energy and natural resources, real estate, basic materials, equipment, utilities and infrastructure, and commodities. While most assets will typically be invested in common stocks, the Fund’s goal is to hold a Portfolio of securities and other investments that, over time, should provide some protection against the impact of inflation. The Fund will invest in companies located throughout the world, and there is no limit on the Fund’s investments in international securities or issuers in emerging markets.

Small-Cap Stock Fund seeks to provide long-term capital growth by investing primarily in stocks of U.S. small companies. The Fund normally invests at least 80% of net assets in stocks of small companies. The Fund defines a small company as having a market capitalization that falls (i) within or below the range of companies in the Russell 2000 Index*** or S&P Small Cap 600 Index or (ii) below the three-year average maximum market cap of companies in either index as of December 31 for the three preceding years. The Russell 2000 and S&P Small-Cap 600 indices are widely used benchmarks for small-cap stock performance. Stock selection may reflect either a growth or value investment approach.

Total Equity Market Index Fund seeks to match the performance of the entire U.S. stock market. The Fund uses the S&P Total Market Index* to represent the market as a whole. Because the largest stocks in the index carry the most weight,

large-capitalization stocks make up a substantial majority of the S&P Total Market Index’s value. The Fund uses a sampling strategy, investing substantially all of its assets in a broad spectrum of small-, mid-, and large-capitalization stocks representative of the S&P Total Market Index. The Fund does not attempt to fully replicate the index by owning each of the stocks in it.

Value Fund seeks to provide long-term capital appreciation by investing in common stocks believed to be undervalued. Income is a secondary objective. In taking a value approach to investment selection, the Fund normally invests at least 65% of total assets in common stocks the Portfolio manager regards as undervalued. The Fund may purchase stocks issued by companies of any size, but typically focuses its investments on large-cap stocks.

*The S&P 500 Index, S&P Completion Index, and S&P Total Market Index are products of S&P Dow Jones Indices LLC (“SPDJI”), and have been licensed for use by T. Rowe Price. Standard & Poor’s®, S&P® and S&P 500® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by T. Rowe Price. The Fund is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, or any of their respective affiliates (collectively, “S&P Dow Jones Indices”). S&P Dow Jones Indices makes no representation or warranty, express or implied, to the owners of the Fund or any member of the public regarding the advisability of investing in securities generally or in the Fund particularly or the ability of the S&P 500 Index to track general market performance. There is no assurance that investment products based on the S&P 500 Index will accurately track index performance or provide positive investment returns. S&P Dow Jones Indices LLC is not an investment advisor. Inclusion of a security within an index is not a recommendation by S&P Dow Jones Indices to buy, sell, or hold such security, nor is it considered to be investment advice.

**The International Equity Index Fund is not in any way sponsored, endorsed, sold or promoted by FTSE International Limited (“FTSE”) or the London Stock Exchange Group companies (“LSEG”) (together the “Licensor Parties”) and none of the Licensor Parties make any claim, prediction, warranty or representation whatsoever, expressly or impliedly, either as to (i) the results to be obtained from the use of the FTSE All World Developed ex North America Index (the “Index”) (upon which the International Equity Index Fund is based), (ii) the figure at which the Index is said to stand at any particular time on any particular day or otherwise, or (iii) the suitability of the Index for the purpose to which it is being put in connection with the International Equity Index Fund. None of the Licensor Parties have provided or will provide any financial or investment advice or recommendation in relation to the Index to T. Rowe Price or to its clients. The Index is calculated by FTSE or its agent. None of the Licensor Parties shall be liable whatsoever to any person arising out of (a) the use of, reliance on or any error in the Index, or (b) investment in or operation of the fund. All rights in the Index vest in FTSE. “FTSE®” is a trademark of LSEG and is used by FTSE under license.

***Frank Russell Company (Russell) is the source and owner of the Russell index data contained or reflected in these materials and all trademarks and copyrights related thereto. Russell® is a registered trademark of Russell. Russell is not responsible for the formatting or configuration of these materials or for any inaccuracy in T. Rowe Price Associates’ presentation thereof.

T. Rowe Price Funds Focusing on Fixed Income (Bond and Money Market Funds)Emerging Markets Bond Fund seeks to provide high income and capital appreciation. The Fund invests at least 80% (and potentially all) of its net assets in debt securities of emerging market governments or companies located in emerging market countries. Fund holdings may be denominated in U.S. dollars or non-U.S. dollar currencies, including emerging market currencies.

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Fund holdings may include the lowest-rated bonds, including those in default, and there are no overall limits on the Fund’s investments that are rated below investment grade.

High Yield Fund seeks high current income and, secondarily, capital appreciation. The Fund normally invests at least 80% of its net assets in a widely diversified Portfolio of high yield corporate bonds, as well as income-producing convertible securities and preferred stocks that are rated below investment grade or not rated by any major credit rating agency but deemed to be below investment grade by T. Rowe Price.

Limited Duration Inflation Focused Bond Fund seeks a level of income that is consistent with the current rate of inflation. The Fund will invest in a diversified Portfolio of short- and intermediate-term, investment-grade, inflation-linked securities, including Treasury inflation protected securities (TIPS), as well as corporate, government, mortgage-backed, and asset-backed securities. The Fund may also invest in money market securities, bank obligations, collateralized mortgage obligations, and foreign securities. The Fund will invest at least 20% of its net assets in inflation-linked securities, although normally the Fund expects to invest 50% or more of its net assets in inflation-linked securities. The Fund will only purchase securities that are rated within the four highest credit rating categories at the time of purchase by at least one major credit rating agency or, if unrated, deemed to be of comparable quality by T. Rowe Price. The Fund will maintain a duration within two years of the duration of the Fund’s benchmark, the Bloomberg Barclay’s U.S. 1–5 Year Treasury Inflation Protected Securities (TIPS) Index.

International Bond Fund seeks to provide high current income and capital appreciation by investing primarily in high-quality, nondollar-denominated bonds outside the U.S. The Fund normally invests at least 80% of its net assets in foreign bonds and 65% of its net assets in non-U.S. dollar-denominated foreign bonds that are rated investment grade, as determined by at least one major credit rating agency or, if unrated, deemed to be of comparable quality by T. Rowe Price. The Fund typically maintains an intermediate- to long-term weighted average maturity and is normally heavily exposed to foreign currencies.

New Income Fund seeks to maximize total return through income and capital appreciation. The Fund normally invests at least 80% of total assets in income-producing securities, which may include, but are not limited to, U.S. government and agency obligations, mortgage- and asset-backed securities, corporate bonds, foreign bonds, collateralized mortgage obligations, and Treasury inflation protected securities. Eighty percent of the debt securities purchased by the Fund will be rated investment grade.

Short-Term Bond Fund seeks a high level of income consistent with minimal fluctuation in principal value and liquidity. It invests primarily in a diversified Portfolio of short- and intermediate-term, investment-grade corporate, government, and mortgage-backed securities. The Fund may also invest in money market securities, bank obligations, collateralized mortgage obligations, and foreign securities. The Fund will only purchase securities that are rated within one of the four highest credit categories at the time of purchase by at least one major credit rating agency or, if unrated, deemed to be of comparable quality by T. Rowe Price. The Fund’s average effective maturity will normally not exceed three years.

Spectrum Income Fund seeks a high level of current income with moderate share price fluctuation. It invests in a diversified group of underlying T. Rowe Price Funds representing specific market segments. The Fund, which normally invests in a variety of domestic and international bond Funds, a money market Fund, and an income-oriented stock Fund, seeks to maintain broad exposure to several markets in an attempt to reduce the impact of markets that are declining and to benefit from good performance in particular market segments over time. The Fund can invest in Funds holding high-quality domestic and foreign bonds, high yield bonds, short- and long-term securities, dividend-paying stocks, and other instruments (such as bank loans).

The percent of assets allocated to the various Funds must conform to the following ranges:

U.S. Bond Enhanced Index Fund seeks to provide a total return that matches or incrementally exceeds the performance of the U.S. investment-grade bond market. To achieve this goal, the Fund’s assets are generally invested in a range of bonds represented in the Bloomberg Barclays U.S. Aggregate Bond Index, which consists primarily of investment-grade fixed income securities of U.S. issuers with intermediate- to long-term maturities. While the Fund’s Portfolio is structured to have similar overall characteristics to the Bloomberg Barclays U.S. Aggregate Bond Index, the Portfolio manager may adjust holdings and use other strategies in an attempt to generate a modest amount of outperformance over the index.

U.S. Treasury Money Fund seeks maximum preservation of capital and liquidity and, consistent with these objectives, the highest available current income. It is a money market Fund managed to provide a stable share price. The Fund invests at least 80% of its net assets in short-term U.S. Treasury securities, which are backed by the full faith and credit of the federal

Asset Allocation Ranges for Spectrum Income Fund As of May 1, 2019

Corporate Income Fund 0–10%

Dynamic Global Bond Fund 0–10%

Emerging Markets Bond Fund 0–20%

Emerging Markets Local Currency Bond Fund 0–10%

Equity Income Fund 5–25%

Floating Rate Fund 0–15%

GNMA Fund 5–20%

High Yield Fund 5–25%

Inflation Protected Bond Fund 0–10%

International Bond Fund 0–15%

International Bond Fund (USD Hedged) 0–20%

Limited Duration Inflation Focused Bond Fund 0–10%

New Income Fund 10–30%

Short-Term Bond Fund 0–15%

Ultra Short-Term Bond Fund 0–10%

U.S. Treasury Intermediate Fund 0–10%

U.S. Treasury Long-Term Fund 0–15%

U.S. Treasury Money Fund 0–25%

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government, and repurchase agreements thereon. The Fund operates as a “government money market Fund,” and also invests at least 99.5% of its total assets in cash, short-term U.S. Government securities, and/or repurchase agreements that are fully collateralized by government securities or cash.*

*An investment in the Fund is not insured or guaranteed by the FDIC or any other government agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund. The Fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the Fund sponsor will provide financial support to the Fund at any time.

Investment RisksFunds May Not Meet Objectives; Accounts Are Not Insured. As with many investments, there is no guarantee that the underlying Funds will meet their objectives. Keep in mind that the Fund shares are not deposits or obligations of, or guaranteed by, any depository institution. Your monies held in the Portfolios are not insured by the FDIC, Federal Reserve, T. Rowe Price, the State, Maryland 529, the Trustee, the College Investment Plan, the Board, or any other government agency. Any investment in the College Investment Plan is subject to investment risks, including possible loss of the principal amount invested.

Principal Risks Associated With Domestic and International Stock InvestingGeneral Risks. The share prices of equity Funds can fall because of weakness in the broad market, a particular industry, or specific holdings. Stock markets can decline for many reasons, including adverse political or economic developments in the U.S. or abroad, changes in investor psychology, or heavy selling at the same time by major institutional investors in the market, such as mutual funds, pension funds, and banks. The prospects for an industry or company may deteriorate because of a variety of factors, including disappointing earnings or changes in the competitive environment. In addition, the investment manager’s assessment of securities of companies held in a Fund may prove incorrect, resulting in losses or poor performance even in rising markets.

Small- and Mid-Cap Stock Risks. The stocks of small- and mid- cap companies entail greater risk and are usually more volatile than stocks of larger companies. Stocks of smaller companies are subject to more abrupt or erratic price movements than large-company stocks. Smaller companies often have narrower product lines, more limited financial resources and trading markets, and their management may lack depth and experience. These companies seldom pay significant dividends that could cushion returns in a falling market.

International Risks. Funds that invest overseas generally carry more risk than Funds that invest strictly in U.S. assets. The specific risk profile of an international Fund varies with its investment style, geographic focus, and whether it invests in developed markets, emerging markets, or both. Risks can result

from varying stages of economic and political development, as well as regulatory environments, trading days, settlement practices, accounting standards, and transaction costs that differ from those of U.S. markets. Investments outside the U.S. could be subject to governmental actions such as capital or currency controls, nationalization of a company or industry, expropriation of assets, or imposition of high taxes. International Funds are also subject to currency risk. This refers to a decline in the value of a foreign currency versus the U.S. dollar, which reduces the value of securities denominated in a foreign currency.

The overall impact on a Fund’s holdings can be significant and long-lasting depending on the currencies represented in the Portfolio, how each one appreciates or depreciates in relation to the U.S. dollar, and whether currency positions are hedged.

Emerging Market Risks. Investments in emerging markets are subject to abrupt and severe price declines and can sometimes be regarded as speculative. The same risks that generally exist for international investments are heightened for investments in emerging markets. The economic and political structures of emerging market countries, in most cases, do not compare favorably with the U.S. or other developed countries in terms of wealth and stability, and their financial markets may lack liquidity. Some emerging market countries also have legacies of hyperinflation, currency devaluations, governmental interference in markets, and local taxes being imposed on international investments. Further, exchange rate movements involving emerging markets currencies are unpredictable, and it is often not possible to effectively hedge the currency risks of many emerging market countries.

Real Assets Risks. Investments in real assets can be significantly affected by a variety of factors, including exploration and production spending; government regulation or deregulation; energy conservation; changes in tax laws and government regulations; raw materials prices, energy prices, and the supply and demand for oil and gas; interest rates; commodity prices; international monetary and political developments such as currency devaluations or revaluations; and central bank movements. Additionally, the rate of earnings growth of natural resource companies may be irregular since these companies are strongly affected by natural forces, global economic cycles, and international politics.

Growth and Value Approach Risks

Growth Investing Risks. Growth stocks can be volatile for several reasons. Since these companies usually invest a high portion of earnings in their businesses, they may lack the dividends of value stocks that can cushion stock prices in a falling market. Also, earnings disappointments often lead to sharp price decreases because investors buy growth stocks in anticipation of earnings growth.

Value Investing Risks. Finding undervalued stocks requires considerable research to identify a particular company, analyze its financial condition and prospects, and assess the likelihood that the stock’s underlying value will be recognized by the market and reflected in its price. The value approach carries the risk that the market will not recognize a security’s intrinsic value for a long time or that a stock judged to be undervalued may actually be appropriately priced at a low level.

Investment risks apply differently to each Portfolio.

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Principal Risks Associated with Index FundsIndex Investing Risks. Because index Funds are passively managed and seek to match the performance of a particular benchmark index, holdings are generally not reallocated based on changes in market conditions or outlook for a specific security, industry, or market sector. As a result, an index Fund’s performance may lag the performance of actively managed Funds that have greater flexibility to respond to changes in economic conditions.

Tracking Error. The returns of an index Fund are typically expected to be slightly below the returns of its benchmark index (referred to as “tracking error”) because the Fund incurs Fees and transaction expenses, while the index has no Fees or expenses. Increased tracking error could also result from changes in the composition of the index or the timing of purchases and redemption of Fund shares. The use of a sampling strategy, as opposed to a full replication strategy, increases the potential for an index Fund’s performance to deviate from the performance of its benchmark index.

Principal Risks Associated with Fixed Income InvestmentsGeneral Risks. Economic and other market developments can adversely affect fixed income securities in the U.S. and abroad. At times, participants in these markets may develop concerns about the ability of certain issuers of fixed income securities to make timely payments, or they may develop concerns about the ability of financial institutions that make markets in certain fixed income securities to facilitate an orderly market. These concerns could cause increased volatility and reduced liquidity in particular securities or in the overall fixed income markets and related derivatives markets. In addition to the following risks that apply to fixed income investments, bond Funds that invest significantly outside the U.S. are also heavily subject to the International Risks and Emerging Markets Risks, including currency risks, previously described for stock investing.

Money Market Risks. An investment in a money market Fund is not insured or guaranteed by the FDIC or any other government agency. Although a money market Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in a money market Fund. A money market Fund’s yield will vary; it is not fixed for a specific period like the yield on a bank certificate of deposit. During periods of extremely low short-term interest rates, a money market Fund may not be able to maintain a positive yield or yields on par with historical levels.

Interest Rate Risks. A rise in interest rates typically causes the price of a fixed rate debt instrument to fall and its yield to rise. Conversely, a decline in interest rates typically causes the price of a fixed rate debt instrument to rise and its yield to fall. Generally, bonds with longer maturities and Funds with longer weighted average maturities or durations carry greater interest rate risk, meaning their price typically declines more in response to rises in interest rates. In recent years, the U.S. and many global markets have experienced historically low interest rates. However, interest rates have begun to rise and may continue doing so, increasing the exposure of bond Funds to the risks associated with rising interest rates.

Credit Risks. In the event that a bond’s issuer suffers an adverse change in financial condition that results in a credit rating downgrade, payment default (failure to make timely payments of interest or principal), or inability to meet a financial obligation, the income level and share price of a Fund investing in that bond could decline dramatically.

Deflation risks. This risk refers to the possibility that prices throughout the economy decline over time—a period of deflation rather than inflation. When inflation is low, declining, or negative, an inflation-protected bond Fund’s performance could lag the performance of more conventional bond Funds.

High Yield Investing Risks. A Fund’s exposure to credit risk is increased to the extent it invests in bonds that are rated below investment-grade, also known as high yield bonds or junk bonds. Issuers of high yield bonds are usually not as strong financially as issuers of bonds with higher credit ratings, so high yield bonds are usually considered speculative investments. These companies are more vulnerable to financial setbacks and recession than more creditworthy companies, which may impair their ability to make interest and principal payments. In addition, the entire junk bond market can experience sudden and sharp price swings due to a variety of factors, including changes in economic forecasts, stock market activity, large sustained sales by major investors, a high-profile default, or a change in the market’s psychology.

Liquidity Risks. The Fund may not be able to sell a holding in a timely manner at a desired price. Reduced liquidity in the bond markets can result from a number of events, such as limited trading activity, reductions in bond inventory, and rapid or unexpected changes in interest rates. Less liquid markets could lead to greater price volatility and limit the Fund’s ability to sell a holding at a suitable price.

Principal Risks Associated with Mortgage-Backed SecuritiesPrepayment Risks. Funds that invest extensively in mortgage-backed securities, other asset-backed securities, or any debt instrument with an embedded call option that may be prepaid at any time have special risks related to changing interest rates. A mortgage-backed bond, unlike most other bonds, can be hurt when interest rates fall because borrowers tend to refinance and prepay principal. The loss of high-yielding, underlying mortgages and loans, and the resulting reinvestment of proceeds at lower interest rates, can reduce a Fund’s potential price, reduce the Fund’s yield, or even cause the bond’s price to fall below what the Fund paid for it, resulting in a capital loss. Any of these developments could cause a decrease in a Fund’s income, share price, or total return.

Extension Risks. In the event that a rise in interest rates accompanied by a drop in mortgage prepayments causes a Fund’s average maturity to lengthen unexpectedly, that Fund’s sensitivity to rising rates and its potential for price declines could be dramatically increased.

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Investment PerformanceTotal Return (net of Fees) as of September 30, 2019*

*Total return figures include changes in principal value and income. Reinvested dividends and capital gain distributions from the underlying Funds will become income to the Portfolios. However, the Portfolios do not distribute any dividends or capital gains, so changes in the total return are reflected by changes in the NAV. Please keep in mind that past performance is not necessarily indicative of future results. Unit price, principal value, and return will vary, and you may have a gain or a loss when you take a distribution. For Portfolios less than one year old, the returns are cumulative and not annualized. Performance information reflects the deduction of the annualized State Fee and/or program Fee, as applicable, and the underlying expenses of the Fund(s) in which each Portfolio invests.

**The weighted benchmark for each Portfolio is an unmanaged Portfolio composed of certain established indexes, which do not reflect any deductions for Fees, expenses, or taxes. You cannot invest directly into any weighted benchmark or in any of the indexes that comprise them. The amount that each weighted benchmark allocates to a particular index is representative of the total mix of investments contained in each Portfolio. Benchmark performance commenced on November 30, 2001, for the Portfolios with an inception date of November 26, 2001. Benchmark performance for all other Portfolios commenced on the same date as the Portfolio’s inception date. More detailed information about each weighted benchmark’s composition can be found in the College Investment Plan’s annual report, available at Maryland529.com.

***As of November 15, 2019, Portfolio for College was renamed to Portfolio for Education Today to more accurately describe the Portfolio’s design for Beneficiaries who are already enrolled or about to enroll in school. This is a name change only.

****On January 2, 2013, the Total Market Index Portfolio became the Global Equity Market Index Portfolio and the Short-Term Bond Portfolio was replaced with the Inflation Focused Bond Portfolio. The performance shown for certain periods reflects the performance while the Portfolio operated under its original name.

Performance information is updated regularly on our website at Maryland529.com.

Portfolio Name One-YearReturn

AnnualizedThree-YearReturn

AnnualizedFive-YearReturn

AnnualizedTen-YearReturn

AnnualizedReturn SinceInception

AnnualizedReturn-WeightedBenchmark**

InceptionDate

Portfolio 2039 2.22% N/A N/A N/A 4.47% 4.89% 05/31/2018

Portfolio 2036 2.22% 10.56% N/A N/A 9.72% 9.97% 11/30/2015

Portfolio 2033 2.58% 10.67% 8.15% N/A 10.71% 10.80% 12/31/2012

Portfolio 2030 3.47% 9.93% 7.69% N/A 10.28% 10.34% 12/31/2009

Portfolio 2027 4.28% 8.92% 7.07% 10.16% 6.87% 6.69% 06/30/2006

Portfolio 2024 5.23% 7.90% 6.42% 9.42% 7.15% 6.98% 10/31/2003

Portfolio 2021 4.65% 6.42% 5.45% 8.39% 5.86% 5.74% 11/26/2001

Portfolio for Education Today***

4.23% 3.60% 2.86% 3.49% 3.25% 3.35% 11/26/2001

Equity Index 500 Portfolio

3.95% N/A N/A N/A 10.15% 10.62% 03/29/2018

Equity Portfolio 2.19% 10.57% 8.10% 10.79% 7.01% 7.01% 11/26/2001

Extended Equity Market Index Portfolio

-3.71% N/A N/A N/A 4.13% 8.61% 03/29/2018

Global Equity Market Index Portfolio****

1.21% 10.39% 7.89% 11.29% 7.46% 7.88% 06/30/2006

Balanced Portfolio 5.19% 7.49% 6.24% 8.46% 6.57% 6.36% 11/26/2001

Bond and Income Portfolio

7.68% 3.95% 3.76% 5.06% 5.62% 4.48% 11/26/2001

Inflation Focused Bond Portfolio****

3.73% 1.38% 0.94% 1.06% 1.96% 2.13% 10/31/2003

U.S. Bond Enhanced Index Portfolio

10.32% N/A N/A N/A 6.59% 7.34% 03/29/2018

U.S. Treasury Money Market Portfolio

1.95% 1.10% 0.66% N/A 0.34% 0.53% 12/31/2009

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Maintaining Your AccountOnline Account Access. You may access your Account information on our website. In addition to viewing your Account and updating your profile information (including contact details), you may make contributions, add banking information, add or update an Automatic Monthly Contribution program, sign up for the GoTuition® gifting portal, request certain distributions, perform investment exchanges, and sign up for paperless statements and confirmations (and paperless Plan Disclosure Statements and supplements, when available). Additional functionalities are added from time to time.

Account Holders who access their Accounts online are eligible for the Account Protection Program. The Account Protection Program restores eligible Account losses due to unauthorized activity, provided the Account Holder follows certain security best practices when accessing and maintaining their Account(s). For more information, visit troweprice.com/personal-investing/help/policies-and-security/account-protection-program.html.

Transaction Confirmations. We will send you a confirmation (either by mail or, if you have elected paperless delivery, electronically) each time a contribution is made to your Account(s), except for Automatic Monthly Contributions and payroll deductions. For gift contributions, a person making a gift through the GoTuition® portal will not receive a transaction confirmation but may request an email notification to verify the contribution was made. You will also receive an Account statement (by mail or, if you have elected paperless delivery, electronically) each quarter that details your contributions, distributions, total Account value, and current investments. These statements are not tax documents and should not necessarily be submitted with your tax forms. However, you could use the Account statement(s) to determine how much you paid or contributed during the previous tax year.

Changing a Beneficiary, Transferring Assets to Another of Your Accounts. You can change your Beneficiary at any time, unless the original Account was funded with UGMA/UTMA assets. To avoid negative tax consequences, the new Beneficiary must be a Member of the Family of the original Beneficiary. Upon transferring an Account to a new Beneficiary, you can choose to redirect the investment of the Account to another Portfolio. For details on tax matters relating to transfers, please see the Rollovers section under Key Federal Tax Issues.

You can also direct that all or a portion of an Account be transferred to another Account you own that has a different Beneficiary, as long as that Beneficiary is a Member of the Family of the prior Beneficiary. Keep in mind that the Account number is changed when assets are moved from one Beneficiary to another. Also, if all assets are transferred from the original Beneficiary to the receiving Beneficiary, the original Account is closed. The Account Holder does not change during the Beneficiary change/transfer process.

You should consult with your tax advisor regarding the tax consequences of changing Beneficiaries and transferring assets.

Changing Investment Direction. You can move money or transfer from one Portfolio to another Portfolio twice per calendar year for the same Beneficiary. If you have multiple Accounts for one Beneficiary, all changes for that Beneficiary requested together on the same day and having the same trade date are expected to count as one investment strategy change. Please log in to your Account, call us, or download the appropriate form by visiting our website.

Removing or Changing a Custodian on Accounts NOT Funded From an UGMA/UTMA. The Custodian will no longer have the authority to act on an Account once the Account Holder reaches the age of majority under Maryland law (although the Custodian may remain listed on an Account between the time that the Account Holder reaches the age of majority and the time the Account Holder takes action to remove the Custodian). Prior to the Account Holder reaching the age of majority, the Custodian may be changed at any time by providing us with written notice. The notice must be from the current Custodian or include a valid court order appointing another person as Custodian. If the current Custodian dies or is declared legally incompetent prior to the Account Holder reaching the age of majority, then the person legally authorized to act on behalf of the minor Account Holder must appoint a new Custodian. Prior to acting on the Account, Account Holders, and/or Custodians may be required to provide documentation and agree to the terms and conditions of the College Investment Plan.

Removing or Changing a Custodian on Accounts Funded from an UGMA/UTMA. We must be notified in writing by the Custodian when the terms and conditions of the original UGMA/UTMA arrangement have been satisfied. A valid court order may also be submitted that stipulates the removal of the Custodian.

The Custodian may be changed at any time by providing us with written notice. The notice must be from the current Custodian or include a valid court order appointing another person as Custodian. If the current Custodian dies or is declared legally incompetent, then the person legally authorized to act on behalf of the Account Holder must appoint a new Custodian. Alternatively, if the Account Holder has reached the applicable age of majority at the time of the Custodian’s death, then the legal representative of the deceased Custodian’s estate may provide written authorized release of the Account directly to the Account Holder without a new Custodian being named.

Prior to acting on the Account, Account Holders and/or Custodians may be required to provide documentation and agree to the terms and conditions of the College Investment Plan.

Limitations. We may deny or limit a Beneficiary change, Account Holder change, or rollover to the College Investment Plan if it causes the aggregate balance for a Beneficiary to exceed the maximum limit. See Maximum Account Balance.

Change of Account Holder. You may transfer control of your Account assets to a new Account Holder. All transfers to a new Account Holder must be requested in writing and include all required information. However, your right of control may not be sold, transferred, used as collateral, or pledged or exchanged for money or anything of value. We may require affidavits or other evidence to establish that a transfer is nonfinancial in nature.

You can change your Beneficiary to a Member of the Family of your original Beneficiary at any time.

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Your right of control may also be transferred under an appropriate court order. If you transfer control of an Account to a new Account Holder, the new Account Holder must complete a new Account application (either online or by filling out the New Account Enrollment form) whereby the new Account Holder agrees to be bound by the terms and conditions of this Disclosure Statement. Transferring an Account to a new Account Holder may have significant tax consequences. Before doing so, you should consult with your tax advisor regarding your particular situation.

Adding GoTuition® Gifting Portal to an Account. To sign up for online gifting, please log in to your Account, sign up to add GoTuition® gifting, accept the Terms & Conditions, and set up your Beneficiary’s profile. Once your Beneficiary’s profile is established, you will be able to share a link with friends and family that will enable you to receive gift contributions directly to your Beneficiary’s College Investment Plan Account.

Closing an Account. You can close your Account by having all of the assets distributed. When you close your Account, all or part of the assets distributed may be a Qualified Distribution or a Non-Qualified Distribution as determined by the IRS. Any Non-Qualified Distribution may be subject to ordinary income tax, as well as the Distribution Tax in certain circumstances. To request certain distributions, please log in to your Account. Alternatively, you can visit our website or call us for the forms you may need. If you name another Beneficiary for your Account(s), we will close your original Account(s) and open a new one(s). You should consult with your tax advisor regarding the tax consequences of closing your Account.

Recovery of Incorrect Amounts. If an incorrect amount is paid to or on behalf of an Account Holder or Beneficiary, we may recover the incorrect amount from the Account Holder or Beneficiary or adjust any remaining Account balances to correct the error. The Trustee, in its discretion, may waive the processing of adjustments resulting from clerical errors or other causes that are de minimis in amount.

Simultaneous Death of Account Holder and Beneficiary. If the Account Holder and Beneficiary on an Account both die and there is no evidence to verify that one died before the other, any appointed Account Holder’s Successor shall become the Account Holder and must designate a new Beneficiary or close the Account. If no Account Holder’s Successor has been appointed, the person responsible for handling the Beneficiary’s estate must designate the new Account Holder. If no executor or fiduciary has been appointed, one must be appointed by a valid court order for this purpose.

Death of Account Holder’s Successor. In the event that your Account Holder’s Successor predeceases you and you do not designate another Account Holder’s Successor or you and your Account Holder’s Successor die simultaneously, the personal representative of your estate is responsible for naming a new Account Holder.

Correction of Errors. There is a 120-day period for making corrections. If, within 120 days after issuance of any Account statement or confirmation, you make no written objection to us regarding an error in your Account that is reflected on that statement or confirmation, we may deem the statement

or confirmation to be correct and binding upon you and your Beneficiary.

How to Take a DistributionGeneral. You can request certain distributions online at any time, or you can take a distribution by completing the Distribution form available on our website or by calling us. Only you (or the Custodian or other legal agent, if applicable) can request a distribution, unless a valid court order directs otherwise.

Tuition Assistance. If your Beneficiary receives Tuition Assistance for attendance at a military academy, a distribution is allowed up to the amount of the Tuition Assistance. Although a distribution due to receipt of Tuition Assistance will be exempt from the Distribution Tax, the earnings portion will be subject to federal income taxes and may be subject to other taxes.

Disability. If your Beneficiary is or becomes Disabled, you may take a distribution. Although any earnings distributed will be exempt from the Distribution Tax, the earnings will be subject to federal income taxes and may be subject to other taxes.

Death. If a Beneficiary dies before all Funds are distributed from an Account, the Beneficiary’s estate or any other legally recognized Beneficiary may take a distribution. Although any earnings distributed will be exempt from the Distribution Tax, the earnings will be subject to federal income taxes and may be subject to other taxes.

Rollover Distribution. To qualify as a Rollover Distribution, the amount distributed from your Account must be reinvested into another Qualified Tuition Program or into an ABLE account within 60 days of the distribution date. For rollovers to an ABLE account, the rollover must be completed by December 31, 2025. To request a Rollover Distribution, complete the appropriate forms with the receiving Qualified Tuition Program.

Method of Payment. The amount of a distribution is based on the NAV of the Portfolios from which you are requesting a distribution. We typically pay distributions by check, although electronic transfers may be available. (We may charge a Fee for wire transfers.) Distributions paid electronically can only be sent to a bank account of which you or your Beneficiary is an owner. Checks can only be mailed to an Eligible Educational Institution, you, or your Beneficiary. A Medallion Signature Guarantee is required for distribution requests of $50,000 or more, a check sent to an address not on file, or for wires to bank accounts not on file with your Account. However, we reserve the right to require a Medallion Signature Guarantee at any time for lesser amounts or for other distribution requests. Distributions may be paid to one or more of the following payees:

• Account Holder,

• Beneficiary,

• Eligible Educational Institution for the benefit of the Beneficiary,

• Beneficiary and Eligible Educational Institution jointly, or

• Estate of Beneficiary.

Additional payee options may be added from time to time. We must have the Beneficiary’s Social Security number or tax

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identification number on file before we can process a distribution (other than a distribution made payable to the Account Holder). It is your responsibility to confirm that the school to which the distribution is made payable is an Eligible Educational Institution.

Timing of Distribution Request. Distribution requests received in good order by T. Rowe Price before the close of the NYSE, normally 4 p.m. eastern time, on any day the NYSE is open for business are processed that day based on the NAVs of the Portfolios for that day. Requests received by T. Rowe Price after the close of the NYSE or on days the NYSE is not open are processed the next business day using the NAVs on that day.

Distributions by Trusts, Corporations, and Other Entities. If the individuals who are authorized to act on behalf of the entity have changed since the Account was opened, then additional documentation must be submitted with any distribution request. Also, if you are an agency or instrumentality of a state or local government, or a tax-exempt organization as defined in the Code, and the Account has been established as a scholarship fund, you must name a Beneficiary before a distribution can be made.

Tax Treatment of Distributions. Please read Federal Taxation of Distributions from your Account and Key State Tax Issues.

Terminating Your AccountUnclaimed Accounts. Under certain circumstances, if there has been no activity in your Account and we have not been able to contact you for a period of at least three years, your Account may be considered abandoned under State law. If your property is considered abandoned, it may, without proper claim by you, be transferred to the Maryland State Comptroller.

Involuntary Termination of Accounts. We may refuse to establish or may terminate an Account if we determine that it is in the best interest of the College Investment Plan or required by law. If we determine that you provided false or misleading information in establishing or maintaining an Account, or that you are restricted by law from participating in the College Investment Plan, we will return your contributions minus administrative costs and any investment losses but may withhold any earnings on the principal in the Account, if any, as of the termination date. Any withheld earnings will be retained by the Trust, and you will be responsible for any losses.

Zero-Balance Accounts. We may consider an Account closed if the Account remains unfunded for a period of 24 months or more.

Key Federal Tax IssuesGeneral. This section takes a closer look at some of the federal tax considerations you should be aware of when investing in the College Investment Plan. The federal tax consequences associated with an investment in the College Investment Plan can be complex. Please keep in mind that the IRS has issued only proposed regulations under Section 529 of the Code; final regulations could affect the tax considerations mentioned in this section or require the terms of the College Investment Plan to change. In addition, we have not requested a private letter ruling from the IRS with regard to the status of the College Investment

Plan under Section 529 of the Code. The Board may, in its sole discretion, apply for a ruling from the IRS at any time.

This discussion is by no means exhaustive and is not meant as tax advice. This information was written solely to support the promotion and marketing of the College Investment Plan. You should consult a tax advisor regarding the application of federal tax laws to your particular circumstances.

Federal Tax-Deferred Earnings. Any earnings on contributions are tax-deferred, which means your Account assets grow free of current federal income tax.

Federal Gift/Estate Tax. For tax year 2019, if the amounts contributed by you on behalf of the Beneficiary together with any other gifts to that person (over and above those made to your Account) during the year do not exceed $15,000 ($30,000 for married couples making a proper election), no gift tax will be imposed for the year. Gifts of up to $75,000 can be made in an individual year ($150,000 for married couples making a proper election) for a Beneficiary and averaged out over five years for the gift tax exclusion.

This allows you to move assets into tax-deferred investments and out of your estate more quickly. Generally, assets in your Account are not included in your estate, unless you elect the five-year averaging and die before the end of the fifth year. Typically, if you die with assets still remaining in your Account, the Account’s value will not be included in your estate for federal estate tax purposes. However, if your Beneficiary dies, the value of the Account may be included in the Beneficiary’s estate for federal tax purposes. Further rules regarding gifts and the generation- skipping transfer tax may apply in the case of distributions, changes of Beneficiaries, and other situations. You should consult with a tax advisor when considering a change of Beneficiary, transfers to another Account, or the specific effect of the gift tax and generation-skipping transfer tax on your situation.

The federal limits discussed above are for the 2019 tax year. In future years, the IRS may change the annual amount that can be excluded from federal gift taxes, so you should consult with your tax advisor for details.

Tax Benefits Not Intended for Abuse. Qualified Tuition Programs are intended to be used only to save for Qualified Education Expenses. These programs are not intended to be used, nor should they be used, by any taxpayer for the purpose of evading federal or state taxes or tax penalties. You may wish to seek tax advice from an independent tax advisor based on your own particular circumstances.

Rollovers. You may roll over all or part of the money in your Account to another Qualified Tuition Program (including the Prepaid College Trust) or to an eligible ABLE account (by December 31, 2025) without adverse federal income tax consequences if the transfer occurs within 60 days of the

The tax consequences of investing in a 529 plan can be complex. Please check with your tax advisor for additional information.

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withdrawal from your Account. A rollover to another Qualified Tuition Program for the same Beneficiary is limited to one per 12 months. If the assets in your Account are being rolled over to an ABLE account or Qualified Tuition Program account for a different Beneficiary, the Beneficiary of the receiving account must be a Member of the Family of the original Beneficiary. Changes in your Beneficiary could potentially cause gift and/or generation-skipping transfer tax consequences to the Beneficiary and/or Account Holder. Any rollover from a Qualified Tuition Program to an ABLE account is subject to the ABLE account’s annual contribution limit as limited by Section 529A of the Code and/or by the state sponsor of the ABLE account. Please consult with your tax advisor.

Similarly, you may fund your Account with a rollover from another Qualified Tuition Program. There are no adverse federal income tax consequences if the transfer occurs within 60 days of the withdrawal from the other Qualified Tuition Program. Rollovers for the same Beneficiary are limited to one per 12 months. If the Beneficiary of the other Qualified Tuition Program is different, the Beneficiary of the resigning Account must be a Member of the Family of the Beneficiary of your College Investment Plan Account, and there are no limits on the number of rollovers that can occur in a 12-month period between Beneficiaries that are Family Members.

Coverdell Education Savings Accounts. You may fund your Account with a distribution from a Coverdell Education Savings Account. This type of distribution is generally tax-free if your Account has the same Beneficiary as the Coverdell Education Savings Account. Currently, the maximum annual contribution to Coverdell Education Savings Accounts is $2,000 per student. Consult your tax advisor for more information.

Education Tax Credits. You and your Beneficiary, if eligible, can take advantage of American Opportunity and Lifetime Learning Tax Credits without affecting your participation in the College Investment Plan or its benefits. You can claim American Opportunity and Lifetime Learning Credits in the same year that you take a tax-exempt distribution from a Qualified Tuition Program provided that you don’t use the distribution for the same educational expenses.

More information may be found in IRS Publication 970, which can be viewed online at irs.gov.

Federal Taxation of Distributions from your AccountAll Distributions. Distributions may have two components: (1) principal, which is not taxable when distributed and (2) earnings, if any, which may be subject to federal income taxation. We determine the earnings portion of your distribution(s) at calendar year-end based on IRS rules and report it to the IRS and the taxable party on Form 1099-Q (or other successor form). The taxable party is the Beneficiary unless the distribution is issued to the Account Holder. Keep in mind that Form 1099-Q does not report whether the distribution is a Qualified Distribution or a Non-Qualified Distribution, or whether a Non-Qualified Distribution is subject to the Distribution Tax. You are responsible for preparing and filing the appropriate forms when completing your federal income tax return and for paying any applicable tax directly to the IRS.

Qualified Distributions. Distributions from your Account are either Qualified or Non-Qualified as determined by the IRS. As the Account Holder, you are responsible for satisfying the IRS requirements for proof of Qualified Distributions and Non-Qualified Distributions not subject to the Distribution Tax, which include retaining any paperwork and receipts necessary to substantiate the type of distribution you received. Your Account statements are not tax documents and should not be submitted with your tax forms. However, you could use the Account statement(s) to determine how much you contributed during the previous tax year. We will not provide information to the IRS regarding the type of distribution you receive.

When money is withdrawn from your Account to pay for Qualified Education Expenses, all of the Account’s investment gains are distributed federally income tax-free, provided you do not also claim all or part of these Qualified Education Expenses as an American Opportunity or Lifetime Learning Credit. If the amount of the withdrawal from your Account exceeds the Beneficiary’s adjusted Qualified Education Expenses (total Qualified Education Expenses reduced by any tax-free educational assistance), some or all of your Account’s investment gains may be recognized as income by the IRS and may be subject to federal income taxes as well as the Distribution Tax. Please see IRS Publication 970 for additional information.

If money is distributed from a Qualified Tuition Program to pay for Qualified Education Expenses and the Beneficiary receives a refund from the Eligible Educational Institution, the amount of the distribution that is recontributed within 60 days of the date of the refund to a Qualified Tuition Program for the same Beneficiary will not be included in the gross income of the Beneficiary or subject to the Distribution Tax. This provision relating to recontributions applies only to refunds received from an Eligible Educational Institution and not to refunds from an elementary or secondary school. Therefore, if you take a distribution to pay Qualified Education Expenses for tuition at an elementary or secondary school and receive a refund from the elementary or secondary school, the refunded portion of the distribution may be treated as a Non-Qualified Distribution even if you recontribute the refunded amount to a Qualified Tuition Program.

Non-Qualified Distributions with No Distribution Tax. For federal income tax purposes and pursuant to current IRS guidance, including Form 1099-Q and proposed regulations, in the event of the death or Disability of your Beneficiary or receipt by your Beneficiary of a scholarship, grant, Tuition Remission, or enrollment at a U.S. military academy, the earnings portion of a Qualified Distribution is generally taxable to you as the Account Holder when you are the payee. In the case of a distribution payable to the Beneficiary or the Eligible Educational Institution under these circumstances, the earnings portion of the distribution is taxable to the Beneficiary. Regardless of who receives the assets, a Non-Qualified Distribution under these circumstances will not be subject to the Distribution Tax.

Other Non-Qualified Distributions. The earnings portion of any other type of Non-Qualified Distribution is generally assessed both income taxes and the Distribution Tax. These are generally taxable to you as the Account Holder. However, the Non-Qualified Distribution will be taxable to your Beneficiary if it is paid to your Beneficiary or the Eligible Educational Institution.

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Aggregation of Accounts. The College Investment Plan’s calculation of earnings is based on IRS guidance as of the date of this Disclosure Statement. While a separate Account number is generally established for each new Portfolio that you select for a specific Beneficiary, for purposes of calculating the principal and earnings portions of a distribution taken from the College Investment Plan, all Investment Options for the same Account Holder and Beneficiary within the College Investment Plan are aggregated. This method of calculating earnings takes into consideration all Portfolios established for the same Account Holder and Beneficiary within the College Investment Plan but does not take into consideration any identically registered accounts held in another 529 Plan established by the State. To determine the principal and earnings portions of a distribution for federal tax reporting, a formula is used that calculates the proportion of all contributions to Accounts for the same Account Holder and Beneficiary within the College Investment Plan in relation to the combined market values of all Accounts for the same Account Holder and Beneficiary within the College Investment Plan. As a result, the earnings reported to the IRS for a distribution taken from a specific Portfolio may differ from the actual earnings associated solely with that Portfolio.

Determination of Taxable Earnings. The earnings portion of a distribution for federal tax purposes is determined by subtracting all contributions made to your Accounts. The remainder, if any, is considered earnings. If the distribution is subject to a Distribution Tax, the Distribution Tax is applied to the earnings portion only. Due to the IRS rules regarding aggregation of Accounts, the reportable taxable earnings may be more or less than the actual earnings on any particular Account or Accounts. You are responsible for calculating and reporting any Distribution Tax to the IRS.

Key State Tax IssuesGeneral. This section takes a closer look at some of the state tax issues you should be aware of when investing in the College Investment Plan. However, the discussion is by no means exhaustive and is not meant as tax advice. The state tax consequences associated with an investment in the College Investment Plan can be complex. You should consult a tax advisor regarding the application of state tax laws to your particular circumstances. In addition, please refer to Maryland Income Tax Administrative Release No. 32, which can be obtained at MarylandTaxes.com by clicking the Tax Publications link at the bottom of the page or by calling 1-800-MD-TAXES.

Maryland State Income Deduction for Contributions. If you are a Maryland taxpayer, you may receive a maximum income subtraction modification on your State income tax return of $2,500 of contributions you make per Beneficiary. Maryland adjusted gross income is determined by applying certain addition and subtraction modifications to federal adjusted gross income. Although any Maryland taxpayer may claim the income subtraction modification for contributions that the taxpayer has made, only the Account Holder will maintain the ability to control the Account and make future investment decisions once the contribution has been made.

The deduction is one of the subtractions available on your State return. Contributions made in excess of $2,500 per Beneficiary in a single year may be carried forward and deducted from your federal adjusted gross income to determine your Maryland adjusted gross income for up to 10 consecutive future years, subject to the $2,500 annual limit.

The following example helps to illustrate how this subtraction modification applies:

• If you contribute $27,500 in Year 1 for a Beneficiary, you can deduct $2,500 per tax year for each of Years 1 through 11 (11 x $2,500 = $27,500). If you also contribute $27,500 in Year 1 for another Beneficiary, you can deduct an additional $2,500 per tax year for each of Years 1 through 11, for a total deduction of $5,000 per tax year from State adjusted gross income.

If you no longer pay Maryland income tax, you are no longer eligible to claim this subtraction modification. Additionally, if you contribute to an Account with money received through the State Contribution Program, you are not eligible for the Maryland State income subtraction modification for contributions made to any College Investment Plan Account for the tax year in which you received the State Contribution (although, if you made contributions to the Prepaid College Trust, you may still take advantage of the income subtraction modification for those contributions).

• To take advantage of the income subtraction modification for a particular year, your contribution needs to be completed online (processed by your bank) or postmarked by December 31 of that year.

• You will not receive a tax form reporting your annual contributions to the Plan and, depending on when the contribution is actually received by T. Rowe Price, it is possible that the contribution will receive a trade date in the following year (even if it was postmarked by December 31). Therefore, you should keep detailed records (for example, transaction confirmations, Account statements, proof of postmark by December 31) in order to substantiate contributions for tax reporting purposes.

Individuals other than the Account Holder may make contributions to an Account and claim the associated State income subtraction modification. The Account Holder may not claim the State income subtraction modification for contributions made by other individuals.

Maryland State Contribution Program. As of the effective date of this Disclosure Statement, money received through the State Contribution Program is expected to be treated similarly to any other contributions to an Account for Maryland State income tax purposes (except that contributions to an Account through the State Contribution Program preclude you from also claiming an income subtraction modification for College Investment Plan contributions made to any Account during that year).

Maryland Tax-Free Distributions for Qualified Expenses. When money is distributed to pay for Qualified Education Expenses, all of your Account’s investment gains, if any, are distributed free of State income taxes. If you no longer pay Maryland income tax, you will no longer receive this Maryland tax benefit.

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Maryland Taxation of Other Distributions/Recapture of Previous Subtractions. Any amounts previously taken as an income subtraction modification from Maryland adjusted gross income must be added to your Maryland adjusted gross income for the tax year in which you take a distribution from your Account, unless the distribution is a Rollover Distribution or used to pay for Qualified Education Expenses. The requirement to add previous years’ subtractions to your Maryland adjusted gross income applies even if the distribution is the result of your Beneficiary’s receipt of Tuition Assistance or the Beneficiary’s death or Disability. If such an event triggers a refund, the refunded amount may be eligible for recontribution if funds are recontributed for the same Beneficiary within 60 days of the refund. You should consult a tax advisor to determine recontribution eligibility.

Non-Maryland Residents. If you are not a Maryland resident, the earnings portion of a distribution from the College Investment Plan, even if used for Qualified Education Expenses, may be subject to applicable state taxes. Depending upon the laws of your or your Beneficiary’s home state, favorable state tax treatment or other benefits offered by that home state may be available only if you invest in the home state’s 529 plan. Any state-based benefit offered with respect to a particular 529 plan should be one of many appropriately weighted factors to be considered in making an investment decision. You should consult with your financial, tax, or other advisor to learn more about how state-based benefits, including any limitations, would apply to your specific circumstances. You also may wish to contact your home state or any other 529 plan to learn more about the features, benefits, and limitations of that state’s 529 plan. Earnings on rollovers may be subject to state tax. Please consult your tax advisor for the specific state tax consequences in your home state.

Maryland Gift/Estate Taxes. Maryland law does not impose gift taxes. Therefore, in the event that you elect five-year averaging of contributions of up to $75,000 ($150,000 for married couples making the proper election), and die prior to the end of the fifth year, a portion of the assets of your Account, while subject to federal gift tax, would not be subject to a Maryland gift tax.

Maryland law imposes an estate tax that parallels the federal estate tax in some respects. Generally, assets remaining in your Account following your death will only affect your Maryland estate tax if included in the federal gross estate. You should consult a tax advisor to evaluate the specific effect of Maryland estate taxes on your situation.

Plan Governance and AdministrationThe College Investment Plan. The College Investment Plan was established under the Enabling Legislation in 2000. The Enabling Legislation requires the Board to adopt procedures that it considers necessary to carry out the provisions of the Enabling Legislation, including procedures relating to the enrollment process for participation in the College Investment Plan, early withdrawals, and transfer of Funds between the College Investment Plan and other Qualified Tuition Programs.

In addition, the Board has discretion with regard to the formation of the College Investment Plan, including the Declaration of a Trust, selection of the Program Manager, assessment of enrollment and other Fees, creation of multiple Portfolios, and receipt of contributions into Accounts.

The College Investment Plan is administered by the Board through Maryland 529, an independent State agency. Monies held by Maryland 529 are not considered monies of the State and may not be deposited into the General Fund of the State.

Funds remaining in the College Investment Plan at the end of any fiscal year remain in the College Investment Plan, may not be considered monies of or commingled with the Maryland Prepaid College Trust, and do not revert to the State General Fund.

Legislative History. Subject to the Governor’s approval, the General Assembly may amend the 2000 statute that created the College Investment Plan by passing new legislation. Bills amending the original legislation with respect to the College Investment Plan have been introduced and passed during the 2003, 2004, 2008, 2016, and 2018 Legislative Sessions.

The Board. As required by the Enabling Legislation, the College Investment Plan is directed and administered by the Board. Pursuant to State procurement law, the Board selects a Program Manager for the College Investment Plan through a competitive bidding process. The Board consists of 11 members. Six members of the Board (the State Comptroller, the State Treasurer, the State Secretary of Higher Education, the Chancellor of the University System of Maryland, the State Superintendent of Schools, and the Secretary of Disabilities) serve ex officio. The five remaining members are appointed by the Governor from the private sector; must have significant experience in finance, accounting, investment management, or other areas that can be of assistance to the Board; take an oath of office; and are required to file annual financial disclosure statements with the State Ethics Commission. Board members receive no compensation for their services to Maryland 529; however, they are entitled to reimbursement for expenses incurred in the performance of their duties. The Board has general and fiduciary responsibility for the College Investment Plan as a whole. There may be vacancies on the Board from time to time.

Annual Report. The Board is responsible for preparing financial statements for the College Investment Plan and retains an independent accounting firm (SB & Company, LLC) to audit the College Investment Plan’s financial statements. The Board is required to submit an Annual Report for Maryland 529 to the Governor and the General Assembly. This report must include financial statements, a complete financial accounting of the College Investment Plan, and the results of the audit. The Board also prepares an Annual Report Summary and Highlights for Account Holders. The Maryland 529 Annual Report

The College Investment Plan is administered by an 11-member Board.

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and the Annual Report Summary and Highlights are incorporated by reference into this Disclosure Statement and are available on our website at Maryland529.com or by calling 888.4MD.GRAD (463.4723).

The Declaration of Trust. The Trust has been established pursuant to the Declaration, which provides that the Board is the sole Trustee of the College Investment Plan and that the Board may appoint its staff to act as the Trustee’s designee with respect to the day-to-day operations of the College Investment Plan.

The Declaration provides that the assets of the College Investment Plan shall be used exclusively to make Qualified and Non-Qualified Distributions in accordance with the provisions of the Enabling Legislation and the Accounts and pay expenses of the Trust in the management, protection, investment, and reinvestment of Trust assets. The Declaration also provides that the Board shall adopt a comprehensive investment plan and policies and may change the plan from time to time as it deems in the best interests of Account Holders and Beneficiaries. Under the Declaration, the Board is also authorized, among other things, to:

Employ Service Providers as independent contractors, to administer the College Investment Plan by providing the following services:

• assistance in development and implementation of the College Investment Plan;

• administrative functions and recordkeeping,

• distribution and marketing,

• investment management,

• investment advice,

• custodial and depository,

• accounting, and

• customer relations.

Execute All Necessary or Desirable Documents to implement and operate the College Investment Plan (including Services Agreements, participation agreements, selling agreements, and other similar documents) and to authorize institutions to offer and sell interests in the Trust;

Establish Fees, Expenses, Penalties, and Other Payments relating to the College Investment Plan (some or all of which may be paid to the College Investment Plan);

Create Additional Portfolios for the College Investment Plan, change the asset allocation or underlying investments of existing Investment Portfolios, or eliminate Investment Portfolios; and

Charge a Penalty to Accounts for Non-Qualified Distributions, in accordance with the terms and conditions of the College Investment Plan, as shall be determined from time to time by the Board in accordance with the Code. The Board does not currently impose such a penalty.

Distributor/Underwriter of the College Investment Plan. T. Rowe Price Investment Services, Inc., is a wholly owned subsidiary of T. Rowe Price, and serves as the College Investment

Plan’s distributor/underwriter. T. Rowe Price Investment Services, Inc., is registered as a broker-dealer under the Securities Exchange Act of 1934 and is a member of FINRA.

Recordkeeper for the College Investment Plan. T. Rowe Price Services, Inc., a wholly owned subsidiary of T. Rowe Price, provides recordkeeping and related services to the College Investment Plan. T. Rowe Price Services, Inc., is registered as a transfer agent under the Securities Exchange Act of 1934.

Investment Advisor and Program Manager to the College Investment Plan. T. Rowe Price provides investment management services and is the Program Manager to the College Investment Plan. T. Rowe Price makes decisions regarding the purchase and sale of investments in the Funds. T. Rowe Price is registered with the SEC as an investment adviser under the Investment Advisers Act of 1940.

Program Manager Address. The address for T. Rowe Price Associates, Inc., and the subsidiaries listed above is 100 East Pratt Street, Baltimore, MD 21202. All general correspondence, however, should be addressed to Maryland College Investment Plan, P.O. Box 17479, Baltimore, MD 21297-1479.

Financial Advisor. Marquette Associates, Inc., has been retained by the Board to assist in its administration of the College Investment Plan. Marquette’s responsibilities include advising the Board with respect to the investments of the College Investment Plan.

General ProvisionsChanges to an Account. All notices, changes, options, and elections requested for your Account must be in writing (unless otherwise waived by us), signed by you, and received by the Program Manager. You must ensure the accuracy of all documentation submitted to us. If acceptable to us, notices, changes, options, and elections relating to your Account will take effect within a reasonable amount of time after the Program Manager has received the documentation, unless we agree otherwise.

Address Changes. To change your address, log in to your Account at Maryland529.com and follow the instructions to change your address or download and complete the Account Services form available on our website. To update the address for other parties associated with the Account, please call us.

Combined Mailings. If two or more members of the same household have Accounts in the College Investment Plan, we will send only one Disclosure Statement. If you need additional copies, or want to be excluded from combined mailings, please call 888.4MD.GRAD (463.4723).

Keep Legal Documents for Your Records. You should retain the Enrollment Kit, any updates to this Disclosure Statement, and your Account statements for your records. We may make

When you move, make sure you update your address in our records to your new address.

33888. 4MD. GRAD

modifications to the College Investment Plan in the future. If so, an addendum to the Disclosure Statement will be sent to you. If material modifications are made to the College Investment Plan, we will provide you with a revised Disclosure Statement.

Under these circumstances, the new addendum and/or Disclosure Statement will supersede all prior versions.

Changes to the Disclosure Statement. We may amend the terms of this Disclosure Statement from time to time to comply with changes in the law or regulations or if we determine it is in Maryland 529’s, the College Investment Plan’s, or the Trust’s best interest to do so.

However, the Board will not retroactively modify existing terms and conditions applicable to an Account in a manner adverse to you or your Beneficiary except to the extent necessary to assure compliance with applicable state and federal laws or regulations or to preserve the favorable tax treatment to you, your Beneficiary, Maryland 529, the College Investment Plan, or the Trust. The Board will promptly notify you of any such amendments, and you will be bound thereby unless you notify the Board in writing of your intent to close your Account within 60 days of the date of the notice.

Changes to the Statute and Regulations. The General Assembly of the State may, from time to time, pass legislation, which may directly or indirectly affect the terms and conditions of Maryland 529, the College Investment Plan, the Trust, and this Disclosure Statement.

Guide to Interpretation. The College Investment Plan is intended to qualify for the tax benefits of Code Section 529. Notwithstanding anything in this Disclosure Statement to the contrary, the terms and conditions applicable to your Account will be interpreted and/or amended to comply with the requirements of that section and applicable regulations.

Creditor Protections. Under Maryland law, your Account is not subject to attachment, garnishment, or seizure by private creditors of you or your Beneficiary.

Federal law also provides limited creditor protections based on the timing of contributions and the debtor’s relationship to the Beneficiary. Generally, contributions made to a debtor’s Account less than one year before the filing of a bankruptcy petition are included in the debtor Account Holder’s bankruptcy estate and are not protected from creditors. Contributions made to a debtor’s Account more than one year before the filing of a bankruptcy petition are generally not part of a debtor Account Holder’s bankruptcy estate, provided that the contributions are not deemed excess contributions and the Beneficiary is the debtor’s child, stepchild, grandchild, or step-grandchild.

However, for contributions made between one and two years prior to the filing of a bankruptcy petition, a current maximum of $6,225 in contributions may be excluded from the debtor Account Holder’s bankruptcy estate.

You should consult a legal advisor regarding the application of this specific law to your particular circumstances and for a determination of whether Maryland or federal law applies to your situation.

Factual Representation. All factual determinations regarding your or your Beneficiary’s residency, Disabled status, and any

other factual determinations regarding your Account will be made by the Trustee based on the facts and circumstances of each case.

Severability. In the event that any clause or portion of this Disclosure Statement is found to be invalid or unenforceable by a valid court order, that clause or portion will be severed from this Disclosure Statement and the remainder of this Disclosure Statement will continue in full force and effect as if that clause or portion had never been included.

Precedence. In the event that inconsistencies are found in the documents governing the College Investment Plan, the order of precedence from most governing to least governing will, except as to provisions that expressly provide otherwise in the Declaration, be as follows: (i) the Code, (ii) State statutes (including the Enabling Legislation), (iii) the Declaration, (iv) Board policy, (v) the New Account Enrollment form, and (vi) the Services Agreement.

Maryland Law. The College Investment Plan is created under the laws of the State. It is governed by, construed, and administered in accordance with the laws of the State. The venue for disputes and all other matters relating to the College Investment Plan will only be in the State.

Claims. Any claim by you or your Beneficiary against the Plan Officials, individually or collectively, with respect to your Account can only be made against the assets in your Account. The obligations of Maryland 529, the College Investment Plan, and the Trust under a New Account Enrollment form are monies received from you and earnings and/or losses from your Account investments, and you or your Beneficiary have no recourse against the Plan Officials, collectively or individually, in connection with any right or obligations arising out of an Account. Assets in your Account are not an obligation of the State, and neither the full faith and credit nor the taxing power of the State can be pledged to the payment of educational expenses, including Qualified Education Expenses. All obligations discussed in this Disclosure Statement are legally binding contractual obligations of the Trust only, a program of Maryland 529, an independent agency of the State.

Rights Reserved. The Trustee, T. Rowe Price, and their agents reserve the following rights: (1) to waive investment minimums; (2) to refuse or cancel any purchase or exchange order; (3) to freeze any Account and suspend Account services when notice has been received of a dispute regarding the ownership of an Account or of a legal claim against an Account, upon initial notification of a shareholder’s death (until the College Investment Plan, or T. Rowe Price or its agent, receives required documentation in correct form), or if there is reason to believe fraudulent activity may occur; (4) to modify or terminate any services at any time; (5) to act on instructions reasonably believed to be genuine; (6) to limit the total number or amount of distributions in a single month and suspend distributions during unusual market conditions; and (7) to involuntarily redeem an Account at the NAV calculated the day the Account is redeemed, in cases of suspected fraudulent or illegal activity, or if the Program Manager or its agent is unable, through its procedures, to verify the identity of the person(s) or entity opening an Account.

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Privacy PolicyProtecting the privacy of your personal information is important to us. The following paragraphs explain the procedures we have in place to protect this information.

Confidential Information. Maryland law requires that the name and other information identifying a person as an Account Holder or Beneficiary in the College Investment Plan be confidential. We recognize our obligation to keep information about you secure and confidential.

Collecting and Using Information. Through your participation in the College Investment Plan, we collect various types of confidential information you provide in your New Account Enrollment form such as your name and the name of your Beneficiary, Social Security numbers or tax identification numbers, residential and email addresses, and demographic information. We also collect confidential information relating to your College Investment Plan transactions such as Account balances, contributions, distributions, and investments. We do not sell information about current or former Account Holders, Custodians, and/or Beneficiaries to any third parties, and we do not disclose it to third parties unless necessary to process a transaction, service an Account, as otherwise permitted or required by law, or with your consent. We may, however, share this information with companies that perform administrative or marketing services for us or with a research firm we have hired. When we enter into these relationships, our contracts restrict the companies’ use of your information, prohibiting them from sharing or using it for any purposes other than those for which they were hired.

Electronic Communications. If you sign up for paperless services online, we will notify you by email about important Plan information or that documents, including Account statements and transaction confirmations, have been delivered. The email notification will prompt you to log in to your Account at Maryland529.com. We may archive these documents and cease providing them on our website after three years. Therefore, you should consider printing any Account information that you may wish to retain before it is removed. After these documents are archived, you will be able to obtain a copy by contacting us for up to six years following the date of the Account statement or confirmation.

Marketing Opt-Outs. We may in the future use information about you to identify and alert you to other Maryland 529 programs that might interest you. If you do not wish to receive this type of information, please call 888.4MD.GRAD (463.4723).

Protection of Information. We maintain physical, electronic, and procedural safeguards to protect the information about you that we collect or use. These include restricting access to those individuals who have a need to know the information such as those who service your Account, resolve problems, or inform you of additional products or services where appropriate.

Continuing Disclosure. The Board has agreed to provide the Program Manager any continuing disclosure documents and related information as required by Rule 15c2-12(b)(5) adopted under the Securities Exchange Act of 1934.

Representations, Warranties, Certifications, and AcknowledgementsAccount Holder’s IndemnityAs Account Holder, I agree to and acknowledge the following indemnity:

I am opening an Account in the Trust based upon my statements, agreements, representations, warranties, and covenants as set forth in the New Account Enrollment form and this Disclosure Statement.

I, through the New Account Enrollment form and the Declaration, indemnify and hold harmless the Plan Officials from and against any and all loss, damage, liability, penalty, tax, or expense, including costs of reasonable attorneys’ fees, to which they shall incur by reason of, or in connection with, any misstatement or misrepresentation that is made by me or my Beneficiary, any breach by me of the acknowledgments, representations, or warranties in the New Account Enrollment form, the Declaration, or this Disclosure Statement, or any failure by me to fulfill any covenants or agreements in the New Account Enrollment form, the Declaration, or this Disclosure Statement.

Account Holder’s Representations and AcknowledgementsI, as Account Holder, represent and warrant to, and acknowledge and agree with, the Trust regarding the matters set forth in this Disclosure Statement and the Highlights Booklet, each contained in the Enrollment Kit, including that:

• I have received, read, and understand the terms and conditions of this Disclosure Statement and the Highlights Booklet.

• I have carefully reviewed all information provided by the Plan Officials with respect to the Trust.

• I am a U.S. citizen or a U.S. resident alien and have a U.S. Address, and my Beneficiary is either a U.S. citizen or a U.S. resident alien.

• I have been given an opportunity to ask questions and receive answers concerning the terms and conditions of the Declaration, the College Investment Plan, the Disclosure Statement, and the Highlights Booklet.

• I have been given an opportunity to obtain any additional information needed to complete my New Account Enrollment form and/or verify the accuracy of any information I have furnished.

• The value of my Account depends upon the performance of the Funds. I understand that at any time, the value of my Account may be more or less than the amounts contributed to the Account.

• After I make a contribution to a specific Investment Option, I will be allowed to change the Investment Option for that contribution no more than twice per calendar year for the same Beneficiary.

35888. 4MD. GRAD

Maryland 529, Administrator and Issuer.

T. Rowe Price Associates, Inc., Program Manager and Investment Adviser.

T. Rowe Price Investment Services, Inc., Distributor/Underwriter.

December 2019

• I cannot use my Account as collateral for any loan. I understand that any attempt to use my Account as collateral for a loan would be void. I also understand that the Trust will not lend any assets to my Beneficiary or to me.

• Except as described in this Disclosure Statement, I will not assign or transfer any interest in my Account. I understand that, except as provided under Maryland law, any attempt to assign or transfer that interest is void.

• The Plan Officials, individually and collectively, do not:

a. Guarantee that my Beneficiary: - will be accepted as a Student by any institution of higher education, other institution of postsecondary education, or elementary or secondary school;

- if accepted, will be permitted to continue as a Student;

- will be treated as a state resident of any state for Tuition purposes;

- will graduate from any institution of higher education, other institution of postsecondary education, or elementary or secondary school; or

- will achieve any particular treatment under any applicable state or federal financial aid programs.

b. Guarantee any rate of return or benefit for contributions made to my Account.

• The Plan Officials, individually and collectively, are not:

a. Liable for a failure of the College Investment Plan to qualify or remain a Qualified Tuition Program under the Code, including any subsequent loss of favorable tax treatment under state or federal law.

b. Liable for any loss of Funds contributed to my Account or for the denial to me of a perceived tax or other benefit under the College Investment Plan, the Declaration, or the New Account Enrollment form.

• My statements, representations, warranties, and covenants will survive the termination of my Account.

CCON0019575201910-935373

MARYLAND SENATOR EDWARD J. KASEMEYER PREPAID COLLEGE TRUST MARYLAND SENATOR EDWARD J. KASEMEYER COLLEGE INVESTMENT PLAN

Maryland529.com | 888.4MD.GRAD (463.4723)